McCann Construction purchased a poured concrete form from Advance ...

[michelleunicorn]

McCann Construction purchased a poured concrete form from Advance Concrete Forms, Inc McCann purchased the concrete form by placing a phone call to Advance in Madison, Wisconsin. Advance delivered the concrete form with an invoice stating the terms of the sale required payment within 30 days and a 1 1/2  interest per month finance charge would be charged on accounts over 30 days. When McCann failed to pay the invoice on time, interest was charged according to this rate. Later, McCann refused to pay the accumulated interest charge, claiming there was not a meeting of the minds regarding the finance charge in any conversation prior to the sale. The trial court concluded that the finance charge was in fact an additional term added by Advance when it accepted McCann's purchase order. Discuss Uniform Commercial Code Section 2-207 in general and with regard to this situation. Does McCann owe the interest accrued?

Question 2

Briefly discuss how an offer can be accepted. Include in your answer the application of the mirror image rule.

[ebonylittles]

Answer to Question 1

Yes, he does. The big change brought about by UCC 2-207 is this: An offeree who accepts may include in the acceptance terms that are additional to or different from those in the offer. It says that for the sale of goods, an additional term will often become part of the contract.

Answer to Question 2

When there is a valid offer outstanding, it remains effective until it is terminated or accepted. An offeree accepts by saying or doing something that a reasonable person would understand to mean that he definitely wants to take the offer. It is important to note that the offeree must say or do something to accept. It need not be a formal acceptance: for example, if Grace offers to sell Janie her accounting textbook for 50, Janie does not have to say I accept your offer. She can accept by simply saying I'll take it, or It's a deal. Janie does not even need to speak. If she hands Grace 50, she also accepts the offer. The common-law mirror image rule requires that acceptance be on precisely the same terms as the offer. If the acceptance contains terms that add or contradict the offer, even in minor ways, courts generally consider it a counteroffer. UCC Section 2-207 has modified this rule for the sale of goods by providing that an acceptance that adds different or additional terms will often create a contract.

[michelleunicorn]

Excellent

[kishoreddi]

TYSM