Instructions:

Using an IRAC format (without labeling paragraphs "rule," "issue," etc.), answer the following question based on the provided hypothetical. Be sure to include mention of UCC 2-201 if it applies.

Clay owns a pottery in which he manufactures ceramic ovenware and crockery. Terry sells such items in his retail store. On June 1, Terry called Clay and spoke to his assistant who accepted his order of 1,000 ceramic mugs of various designs at $5.10 each, for immediate delivery. Later that day, Terry mailed the following printed form to Clay, with the blanks filled out by hand (the handwriting is denoted here by italics):

TERRY'S HOUSEWARES. Terry, Proprietor.

PURCHASE ORDER

Date: June 1, 2016

To: Clay Potter

Please ship the following goods immediately: 1,000 assorted mugs as discussed by phone at $5.10 each.

On June 6, Terry received the following letter from Clay:

Dear Terry,

I have received your order of June 1. I am sorry that I am out of mugs at present and cannot supply them right now. I am in the process of making a new batch and should have them in stock next month. Due to increased costs, I am going to have to raise the price to $5.50 each. If you would like me to hold your order until that time let me know. Also, tell me which designs you want. Your order refers to an assortment as discussed by phone, but no one here remembers talking to you and we have no record of your call.

Yours truly, Clay.