This document outlines the process for determining whether communications create a contract under UCC 2207. It involves analyzing whether there was a definite expression of acceptance, whether there was a proviso clause, and whether additional or different terms become part of the contract depending on if the parties are merchants. If the communications did not create a contract under 2207(1), then 2207(3) applies and the terms are those agreed upon in communications, with gaps filled in.
This document outlines the process for determining whether communications create a contract under UCC 2207. It involves analyzing whether there was a definite expression of acceptance, whether there was a proviso clause, and whether additional or different terms become part of the contract depending on if the parties are merchants. If the communications did not create a contract under 2207(1), then 2207(3) applies and the terms are those agreed upon in communications, with gaps filled in.
This document outlines the process for determining whether communications create a contract under UCC 2207. It involves analyzing whether there was a definite expression of acceptance, whether there was a proviso clause, and whether additional or different terms become part of the contract depending on if the parties are merchants. If the communications did not create a contract under 2207(1), then 2207(3) applies and the terms are those agreed upon in communications, with gaps filled in.
1. Is there a definite and seasonable expression of acceptance? If not, go to the next communication. If no additional communications, go to 2207(3)
2. If yes, is there a proviso clause? If no, go to 2207(2)
3. If there is a proviso clause, determine whether the jurisdiction
follows Dorton or C. Itoh. a. If C Itoh, document is not an acceptance - go to next communication or if no communications go to 2207(3). b. If Dorton, ask whether accepting party intended only to go forward if additional or different terms are agreed to by the offeror (did accepting party really intend to enforce proviso). If so, same as C itoh (next communication or 2207(3)). If not, then ignore proviso and proceed to 2207(2)
2207(2). Terms of contract created under 2207(1).
1. Additional terms in acceptance:
a. Is the contract between merchants? i. If no, additional terms are proposals that must be accepted by the offeror. If not accepted, not part of contract ii. If yes, additional terms are part of contract unless: (1) materially alter contract (arbitration, gets rid of warranties, etc.), (2) are rejected within reasonable time by offeror, or (3) offer was limited to terms. In any of those three cases additional terms are not part of contract.
2. Different terms in acceptance. 3 different rules in different
jurisdictions a. Majority Knockout Rule (JJ White): b. Sommers Rule: Offer controls because accepting party could have made acceptance contingent with proviso c. California Rule: Treat same as additional terms per (1) above
2207(3). Parties actions recognize a contract but communications did not create a contract under 2207(1)
Terms are those in which the parties communications agreed, and gap filler (super knockout)