Business Law Today, Comprehensive 10th Edition by Roger LeRoy Miller

Exercise 4

Case Problem with Sample Answer-Offer and Acceptance. Continental Insurance Co. issued a policy to cover shipments by Oakley Fertilizer, Inc. Oakley agreed to ship three thousand tons of fertilizer to Ameropa North America on barges. Oakley sent Ameropa a contract form that stated Oakley would be responsible for any damage to the goods until Ameropa paid for them. Ameropa e-mailed a different form that indicated that Ameropa would be responsible for any damage once the fertilizer was loaded onto barges. The cargo was loaded onto barges but had not been paid for when it was damaged in a hurricane. Oakley filed a claim for the loss. Continental denied coverage on the basis of Ameropa's form. Is Continental correct Explain