With regard to transactions between merchants, failure to repudiate a confirming letter within ten (10) days after receipt binds the non-signing merchant, just as if he had signed the letter or a contract.

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This is known as the "battle of the forms" and is a common law principle in contracts. If a merchant receives a confirming letter from another merchant and does not reject its terms within ten days, then they are deemed to have accepted the terms and are bound by them. This is because the failure to reject the letter is seen as a counteroffer, which is accepted by silence or inaction.

With Regard to Transactions Between Merchants, Failure to Repudiate a Confirming