Waranties, contracts
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Supplier, Inc., a large wholesaler, had a contract with Grocery. Supplier sued Grocery for breach of contract when Grocery failed to place an order for goods by a specific date as specified in the contract. Each order was to be worth at least $550. Grocery contended that the contract Bill Green signed was a standard preprinted supply contract without specifics regarding time of order and quantity. Green had authority to sign a standard supply contract, but could not authorize specific terms. This was unknown to Supplier. Supplier argued that the terms were "boilerplate" and could therefore be modified by acceptance. Supplier offered oral testimony at trial to prove that Green agreed to the modifications.
a) Is there a contract? If so, what are the terms?.
b) What about the use of Supplier's oral testimony at trial?
What are the different warranties that apply to Grocery's business?
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Solution Summary
Supplier, Inc., a large wholesaler, had a contract with Grocery. Supplier sued Grocery for breach of contract when Grocery failed to place an order for goods by a specific date as specified in the contract. Each order was to be worth at least $550. Grocery contended that the contract Bill Green signed was a standard preprinted supply contract without specifics regarding time of order and quantity. Green had authority to sign a standard supply contract, but could not authorize specific terms. This was unknown to Supplier. Supplier argued that the terms were "boilerplate" and could therefore be modified by acceptance. Supplier offered oral testimony at trial to prove that Green agreed to the modifications.
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Yes, it is a standard or boilerplate contract containing standard terms. The definition of boilerplate/standard contract is as follows:
A standard form contract (sometimes referred to as an adhesion contract or boilerplate contract) is a contract between two parties that does not allow for negotiation, i.e. take it or leave it. It is often a contract that is entered into between unequal bargaining partners, such as when an individual has a contract thrust into her hand by the salesperson of a multinational corporation. The consumer is in no position to negotiate the standard terms of such contracts and the company's representative often does not have the authority to do so.
For further information on the characteristics of such contracts and why they are misleading and consusing, as in this case for grocery shop owner, can be read from the following ...
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- MBA, Rochester Institute of Technology
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