Question

Key of G Products, Inc., offers to sell to Harmony Company one hundred MP3 players at $50 a piece, subject to certain specific delivery dates. Harmony replies with a signed purchase order that reads, “Accept your offer for 100 I-appliances at $50 each. Must be delivered to our ware-house.” Key of G does not respond or deliver the goods. Harmony files a suit for breach of contract, to which Key of G answers that there is no contract because Harmony’s purchase order contained additional terms and is not signed by Key of G. Can Harmony recover?

Answer 1

Yes, Harmony can recover.Additional or different terms in an unconditional acceptance, which is otherwise definite and timely, are interpreted as proposals for additional terms to a contract, unless the contract is between merchants. In that situation, the terms become part of the contract unless (1) the offer expressly limits acceptance to its terms, (2) theadditional terms materially alter the contract, or (3) the offeree objects to the additional terms within a reasonable time.

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