District of Columbia Merchant's Objection to Additional Term

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US-02465BG
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Unless it is expressly specified that an offer to buy or sell goods must be accepted just as made, the offeree may accept an offer and at the same time propose an additional term. This is contrary to general contract law. Under general contract law, the proposed additional term would be considered a counteroffer and the original offer would be rejected. Under Article 2 of the UCC, the new term does not reject the original offer. A contract arises on the terms of the original offer, and the new term is a counteroffer. The new term does not become binding until accepted by the original offeror. If, however, the offer states that it must be accepted exactly as made, the ordinary contract law rules apply.

In a transaction between merchants, the additional term becomes part of the contract if that term does not materially alter the offer and no objection is made to it. However, if such an additional term from the seller operates solely to the seller’s advantage, it is a material term and must be accepted by the buyer to be effective. A buyer may expressly or by conduct agree to a term added by the seller to the acceptance of the buyer‘s offer. The buyer may agree orally or in writing to the additional term. There is an acceptance by conduct if the buyer accepts the goods with knowledge that the term has been added by the seller.

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FAQ

SECTION 2?103. (1) In this Article unless the context otherwise requires (a) "Buyer" means a person who buys or contracts to buy goods. (b) "Good faith" in the case of a merchant means honesty in fact and the observance of reasonable commercial standards of fair dealing in the trade.

The UCC considers ?additional terms? to be ?proposals for addition to the contract.?[56] If the transaction is between merchants, these additional terms will become a part of the contract unless the additional provisions: (1) ?materially alter? the agreement, (2) the other party objects to the new terms or (3) the ...

52) Section 2A-201(1) of the Uniform Commercial Code (UCC) states that lease contracts involving payments of $1,000 or more must be in writing. 53) If a modification of the lease contract increases the lease payment to $1,000 or more, the modification has to be in writing to be enforceable.

Uniform Commercial Code Article 2 governs the sale of goods. It was part of the original Uniform Commercial Code approved in 1951. Article 2 represented a revision and modernization of the Uniform Sales Act, which was originally approved by the National Conference of Commissioners on Uniform State Laws in 1906.

(a) The Uniform Commercial Code must be liberally construed and applied to promote its underlying purposes and policies, which are: (1) to simplify, clarify, and modernize the law governing commercial transactions; (2) to permit the continued expansion of commercial practices through custom, usage, and agreement of the ...

Under § 2-204(1), a contract for the sale of goods may be made in any manner sufficient to show agreement, including conduct by both parties which recognizes the existence of a contract. 2. Under § 2-204(2), a contract may be found even though the moment of its making is undetermined.

The "merchant's exception" provision of U.C.C. § 2-201(2) breaks down. into six discrete elements: 1) the sale must be between merchants; 2) the confir- mation must have been "received" by the other merchant; 3) the confirmation. must be received "within a reasonable time;" 4) the merchant receiving the con-

Article 2B uses the rule of perfect tender (the standard used in Article 2 of the UCC) as a performance standard for mass-market transactions. For other transactions, Article 2B establishes the standard of substantial conformance to the software's documentation.

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District of Columbia Merchant's Objection to Additional Term