Jack has been in the business of selling carpeting for 20 years. He calls Bob, who is opening another branch of his furniture stores, and offers to sell him 100 square yards of carpet at $20 per square yard. Bob agrees and sends back the following letter confirming the deal: Dear Jack:
As we discussed on the phone January 3, we accept your offer of 100 square yards of Saxony "heather blue" carpeting at the rate of $20 per square yard. We also reserve the right to purchase any additional yardage we need to carpet our other showroom facilities at the same rate for one year from that date.
Very truly yours,
Bob
Which of the following is true?
A) There is a contract for only 100 square yards of carpeting.
B) There is a contract for 100 square yards PLUS the additional yardage.
C) There is no contract since Bob made a counteroffer.
D) There is no contract because the additional term is too uncertain to become a contract term.

Question

Quizplus · Accepted Answer

Bob's letter is an acceptance of Jack's original offer for 100 square yards of carpeting. The mention of additional yardage at the same rate for one year is an attempt to modify the original offer, which does not alter the acceptance of the initial offer for 100 square yards. Therefore, a contract exists only for the 100 square yards of carpeting initially offered by Jack.

Jack Has Been in the Business of Selling Carpeting for 20