Miranda Airways, a commercial air carrier, has a contract with Wurtherton Inc., an airplane manufacturer, to purchase a new plane. Due to a sudden shortage of cash, Miranda Airways goes to MetrosBank. MetrosBank issues a document to Wurtherton, which says that if Miranda does not pay for the transaction, MetrosBank would. Wurtherton considers the offer and then sends an acceptance with additional terms. The additional terms stipulate that Miranda Airways could have the new airplane for a period of 10 years and then return it to Wurtherton. Miranda Airways agrees to the acceptance, and Wurtherton hands over the new airplane to them. What is the nature of the contract between Miranda Airways and Wurtherton?

Question

Quizplus · Accepted Answer

The additional terms stipulating that Miranda Airways could have the new airplane for a period of 10 years and then return it to Wurtherton suggest that the contract is for a lease, rather than a sale of goods. The fact that Wurtherton sent an acceptance with additional terms also suggests that there was a negotiation involved, making it less likely to be a counteroffer or option contract.

Miranda Airways, a Commercial Air Carrier, Has a Contract with Wurtherton