A buyer and seller have been doing business for months without a formal contract.On Mondays,the seller delivers supplies to the buyer's business.On Thursdays,the buyer pays the invoice by mail.Difficult times arrive.The buyer fails to make payment and the seller sues for breach of contract.Is there a contract?

Question

Quizplus · Accepted Answer

Under the UCC, a contract can be formed by the conduct of the parties. The regular delivery of supplies on Mondays and the regular payment of invoices on Thursdays constitute a clear pattern of conduct that can be interpreted as the formation of a contract. Therefore, the seller can sue for breach of contract, and is likely to prevail in court. Even in jurisdictions where the offer-acceptance rule is rigidly applied, the conduct of the parties can be seen as tantamount to an offer and acceptance.

A Buyer and Seller Have Been Doing Business for Months