Question
Could you please review my answer and make sure it convers the question correctly. Thank you Question - Alpha Products Company offers to sell to
Could you please review my answer and make sure it convers the question correctly. Thank you
Question - Alpha Products Company offers to sell to United Sales Company one hundred MP3 players at $50 a piece, subject to certain specific delivery dates. United replies with a signed purchase order that reads, "Accept your offer for 100 I-appliances for $50 each. Must be delivered to our warehouse." Alpha does not respond or deliver the goods. United files a suit for breach of contract. Alpha answers that there is no contract because United's purchase order contained additional terms and is not signed by Alpha. Can United recover? Explain fully
ANSWER -
Alpha Products Company offers to sell United Sales Company one hundred MP3 players for a cost of $50.00 each. This is subject to specific delivery dates. The signed purchase offer is returned to Alpha which reads "Accept your offer for 100 I-appliances for $50.00 each. Must be delivery to our warehouse." There is no response from Alpha or no delivery of goods to United. A suit was filed by United for breach of contract. Alpha states that no contract was formed because the contract contained additional terms not signed by Alpha.
I would state that this contract would be governed by the UCC article 2 and that both parties are merchants. When both parties are merchants the mirror image rule does not apply. Alpha offered United a sales agreement and United responded with a signed purchase offer. The additional terms were for the goods to be delivered to their warehouse. Under the UCC, sales contracts need to show the intent of both parties to enter into an agreement for it to be binding and enforceable. In this case, I believe this condition is met when the offer was made by Alpha, their intent, and the signed purchase offer made by United, their intent.
Additional terms between merchants become part of the contract unless the offer expressly limits acceptance to its terms, the additional terms will materially change the contract, or the offeree objects to the additional terms within a reasonable time. In this case, none of the above conditions are met. The offer did not limit its acceptance, shipping the product to United's Warehouse did not materially change the contract and Alpha expressed no objection within a reasonable time.
Alpha's claim that the contract was not signed also does not have validity either in this case. Under the UCC, a special rule for contracts between merchants in sales transactions. If one merchant sends a signed confirmation to the other within a reasonable time, indicating the terms of the agreement, the receiving merchant has ten days to reject it in writing.
With consideration to all the facts of this case, I would argue that United would win the suit against Alpha.
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