Also known as:Section 2-207 · § 2-207 · UCC § 2-207 · 2-207 · battle of the forms · UCC 2-207
Written by attorneys · grounded in primary & secondary sources — see below
2 senses
1
under the Uniform Commercial Code
A statutory rule that permits a definite and seasonable expression of acceptance to operate as an acceptance even though it states terms additional to or different from those offered or agreed upon, unless acceptance is expressly made conditional on assent to the additional or different terms. Additional terms between merchants become part of the contract unless the offer expressly limits acceptance, the terms materially alter the agreement, or the offeror seasonably objects.
2
under the Uniform Probate Code
A statutory provision that includes the value of the decedent's nonprobate transfers to the surviving spouse in the augmented estate for purposes of calculating the elective share. The marital-property portion of those amounts is then applied first to satisfy the elective-share amount.
Each sense below has its own examples, sources, and questions.
Sense 1
1
under the Uniform Commercial Code
A statutory rule that permits a definite and seasonable expression of acceptance to operate as an acceptance even though it states terms additional to or different from those offered or agreed upon, unless acceptance is expressly made conditional on assent to the additional or different terms. Additional terms between merchants become part of the contract unless the offer expressly limits acceptance, the terms materially alter the agreement, or the offeror seasonably objects.
Examples4
Additional Terms in Acceptance
Samantha Stone sent a purchase order for custom parts that matched the essential terms of Silverline Industries' offer but added a consequential-damages disclaimer. Silverline shipped the parts without objection. The court held that the disclaimer did not become part of the contract because it materially altered the agreement and therefore remained only a proposal.
Wisconsin Knife Works v. National Metal Crafters781 F.2d 1285, 1286
Material Alteration of Remedies
Sabrina Shah ordered industrial equipment from Summit Bank under a purchase order silent on liability limits. The seller's confirmation added a broad exclusion of consequential damages. Because the exclusion would materially alter the buyer's remedies, the court treated it as a mere proposal that never entered the contract.
Aluminum Company of America v. Essex Group, Inc.499 F. Supp. 53 (W.D. Pa. 1980)
Shrinkwrap Terms After Payment
Santiago Sanchez ordered a computer by phone and paid before receiving the box containing additional terms. The court held that the later terms did not bind Sanchez because the contract had already formed upon the telephone order and payment, leaving the new terms as proposals requiring express assent.
Hill v. Gateway 2000, Inc.105 F.3d 1147 (7th Cir.1997)
License Terms Inside Box
Simon Stern purchased software from Sentinel Security. The box contained a license with additional restrictions that appeared only after opening. The court ruled that the restrictions did not become part of the contract because the sale had already occurred and the new terms constituted proposals that required affirmative acceptance.
ProCD, Inc. v. Zeidenberg86 F.3d 1447 (7th Cir. 1996)
Frequently Asked3
When does an acceptance containing additional terms still form a contract under Section 2-207?+
A definite and seasonable expression of acceptance forms a contract even if it states additional or different terms, unless the acceptance is expressly made conditional on assent to those terms. The additional terms then become proposals that may or may not enter the contract.
What happens to additional terms between merchants under Section 2-207?+
Between merchants, additional terms in an acceptance become part of the contract unless the offer expressly limits acceptance, the terms materially alter the agreement, or the offeror seasonably objects. Material alterations such as consequential-damages disclaimers typically remain proposals only.
How is Section 2-207 used when writings conflict but the parties perform?+
Conduct by both parties that recognizes the existence of a contract establishes an agreement even when the writings do not. The terms consist of those on which the writings agree plus any supplementary terms supplied by the UCC.
Sense 2
2
under the Uniform Probate Code
A statutory provision that includes the value of the decedent's nonprobate transfers to the surviving spouse in the augmented estate for purposes of calculating the elective share. The marital-property portion of those amounts is then applied first to satisfy the elective-share amount.
Examples2
Elective Share Offset Calculation
Sofia Stern, surviving spouse of a construction firm founder, petitioned for an elective share after the decedent devised most assets to a son. The personal representative included the value of nonprobate transfers made to Sofia during the marriage in the augmented estate under Section 2-207. The court multiplied that value by the statutory percentage based on the length of the marriage to determine the marital-property portion applied first against her elective-share amount.
Marital Property Fraction Applied
Steven Silva claimed an elective share after his spouse's death. The augmented estate included nonprobate transfers to Steven under Section 2-207. The court computed the marital-property portion by multiplying the included value by the schedule percentage corresponding to the couple's twenty-year marriage and applied that portion to reduce the elective-share amount before turning to other assets.
Frequently Asked2
What amounts does Section 2-207 include in the augmented estate?+
Section 2-207 includes the value of the decedent's nonprobate transfers to the surviving spouse. Only the marital-property portion of those amounts is applied first to satisfy the elective-share amount.
How is the marital-property portion calculated under the probate provisions referencing Section 2-207?+
The marital-property portion is computed by multiplying the value of the amounts included under Section 2-207 by the percentage from the statutory schedule that corresponds to the length of the marriage.
60, Restatement of Contracts, 37 Fordham L.Rev. 317 (1969); J. Murray, Behaviorism Under the Uniform Commercial Code, 51 Ore.L.Rev. 269, 272 (1972); D. Murray, Under the…
provides a default rule that the parties intended, as the terms of their agreement, those terms to which both parties have agreed, along with any terms implied by the provisions of the…
(3). So there was an agreement, signed by National Metal Crafters, covering all the purchase orders. The fact that the delivery dates were not on the purchase orders when received by…
provides: “(1) A definite and seasonable expression of acceptance or a written confirmation which is sent within a reasonable time operates as an acceptance even though it states terms…
ContractsFormation of contracts · Mutual assent (including offer and acceptance, and unilateral, bilateral, and implied-in-fact contracts)UBEFoundational