UCC 2 207 Flow Chart
UCC 2 207 Flow Chart
UCC 2 207 Flow Chart
If Same Terms exist in both the Offer and the Acceptance, then a contract is created on the terms of the Offer and the Acceptance. No UCC 2-207 issue exists.
If Additional or Different Terms exist between the Offer and the Acceptance, then a UCC 2-207 issue exists. Go on to the next two possible scenarios:
A definite and seasonable expression of acceptance was given (i.e. if offeree clearly accepted)? If so, then go on to examine the possible 2 scenarios about that acceptance:
A definite and seasonable expression of acceptance was NOT given (i.e. if offeree didnt clearly accept).
If so, then a contract is created under UCC 2-207(1). But the additional and different terms will be determined by the following: ADDITIONAL TERMS FOR K BETWEEN 2 MERCHANTS: If the contract is between merchants, additional terms are included in the contract unless: (a) the offer expressly limits acceptance to the terms of the offer; OR (b) the additional terms materially alter the contract; OR (c) notification of objection to them has already by given or is given within a reasonable time after notice of them is received (UCC 2-207(2).
If so, a contract is not created by the exchange of Offer and Acceptance under UCC 2-207(1). But a contract may still be created by conduct. Ask if the facts fall within the following the next 2 scenarios:
If the other party expressly and unequivocally accepts additional and different terms, a contract is formed of terms of the counteroffer.
If the other party does not expressly & unequivocally accept, then a contract may still be formed by conduct under UCC 2-207(3). Go to the following analysis.
If so, then a contract by conduct exists under UCC 2-207(3). Consequently, the terms of the contract are those terms that are a mirror-image of one another. Conflicting and additional terms are knocked out and replaced by UCC gapfillers). UCC 2207(3).
No contract exists.
ADDITIONAL TERMS FOR K NOT BETWEEN MERCHANTS: If one or more parties is not a merchant, additional terms ARE NOT included in the contract unless that partys assent to inclusion of that term is separately expressed. DIFFERENT/CONFLICTING TERMS: Different (Conflicting) terms are knocked out and replaced by UCC Article 2 gapfillers.
Note: This flow chart was prepared by Washburn Bar Services and is merely intended as a supplement to help students gain practical comprehension of the topic that it reflects. It is not intended to replace materials for a comprehensive bar program, such as BarBri or Kaplan.