Gary,a partner in G & R Enterprises,went to a trade show and discussed with a manufacturer's representative of Foods 4 U,Inc.the purchase of three dozen food processors.A week after the trade show Gary received a signed letter from the representative thanking Gary for visiting his booth and saying Gary's order for three dozen Style 418B food processors at $90 each would be shipped to his business address within 30 days.Can Gary be contractually bound to accept and pay for the food processors?
A) If,after he returns from the trade show,Gary decides he only wants to purchase twelve food processors,he would not have to pay for three dozen if they are shipped to him as long as he notifies Foods 4 U of the change in quantity before it ships the goods.
B) Gary did not sign an order form,and an order this large would have to be in writing and signed by Gary to be enforceable.
C) If Gary does not object in writing within ten days after receiving the letter,he can be bound to accept and pay for the three dozen food processors.
D) The letter is not sufficient to bind either Gary or Foods 4 U,Inc.to the purchase and sale of the food processors.

Question

Quizplus · Accepted Answer

Gary can be contractually bound to accept and pay for the three dozen food processors if he does not object in writing within ten days after receiving the letter. This is known as the "Battle of Forms" rule, which states that if the parties exchange forms (like a quote and an order acknowledgment), and they both contain different terms, then the last form received without objection will govern the contract. In this case, the letter from Foods 4 U with the price and quantity terms was the last form received, and Gary did not object within ten days, so he can be bound to the contract. Option A is incorrect because a change in quantity would be a counteroffer, which Foods 4 U would have to accept or reject. Option B is incorrect because the contract does not need to be in writing and signed by Gary, as long as the essential terms are present and there is an offer, acceptance, and consideration. Option D is incorrect because the letter contains the essential terms of the sale and shows an intent to be bound.

Gary,a Partner in G & R Enterprises,went to a Trade