Question

When a merchant seller of goods to another merchant adds terms to the acceptance there were not in the original offer by the buyer, what happens to the offer? Explain.

Answer 1

By adding terms to the acceptance, the merchant seller has made a counteroffer. in this case, the terms of the previous contracts are changed and hence, his acceptance based on the adding new terms cannot be considered as an acceptance of the original contract unless and until the other merchant honors the new terms added.

Let us learn this with the help of an example.

Suppose, A wants to buy specific goods from B at a price. B accepts the offer and adds terms which state that he will sell only if A makes payment within 10 days. In this case, B has made a counteroffer. While A may choose to not honor it, in which case, there would not be a contract between the two parties; but if A sends the payment within 10 days, it would mean he has accepted the new terms introduced in the contract by B. Hence, a contract has been established between the two parties.