Business law case study─counter offer?

Sorry, this question is a bit long. I understand that the below case is a counter offer in which no contract is existed. However, I am not sure whose terms (EFI or MHG) should be followed when this case appear in court. Thanks for your help!





Wong, the Managing Director of Exclusive Food Imports (EFI), a gourmet food import company, wrote to Leung, the Regional Purchasing Manager for the Majestic Hotel Group (MHG), on 1 June 2006:





“Dear Mr. Leung,


Further to our phone discussion yesterday afternoon, I write to offer to supply 2000 kg of Scottish smoked salmon to the MHG over the period of the next 12 months.


….


Please complete the enclosed order form and post it back as soon as possible. ….”





The order form that EFI sent to MHG contained terms and conditions prescribed by EFI. Clause 3 stated that the price of the salmon was HK$85.00 per kg. Clause 10 said that all orders were accepted only on EFI’s terms, which were to prevail over any terms and conditions in the buyer’s order. Clause 15 stipulated that any increase in the cost of the product including shipping during the year should be added to the price (per kg).





On 15 June 2006 MHG sent a standard MHG purchase order to EFI. The second sentence in page 1 said “Please supply (Scottish smoked salmon) on terms and conditions stated below”. Clause 5 of the standard purchase form stipulated that 160kg of Scottish smoked salmon shall be delivered to the MHG’s central warehouse on 2nd of every month (for the next 12 months). Clause 19 of the conditions stated that the price of the salmon shall be HK$80.00 per kilogram. Clause 20 provided that: “The usual conditions governing the sale of food apply”. There are, however, no such conditions. The order form was silent on the effect of increase in the cost of smoked salmon over the contracted 12 month period. At the foot of the order form was a tear-off slip stating: “We accept your order on the Terms and Conditions stated thereon”.





On 19 June 2006 EFI signed and returned the order form, writing “Your order is being entered in accordance with our quotation of 1 June 2006” at the head of page 1 of MHG’s order form.





At 9:00am 14 July 2006 EFI sent a fax to MHG, saying that due to the increase of cost of supply and transport, the price of the Scottish smoked salmon to be delivered over the next 12 months was now HK$89.00 per kilogram. EFI said in the fax that no delivery will commence until EFI had confirmation on the increased price from MHG.Business law case study─counter offer?
You're on the right track - you have to discuss the counter offer, whether it was accepted, and whether there was an attempt to modify the contract (assuming one was reached) and whether it was effective.





Enjoy your homework. Contracts professors love this stuff.Business law case study─counter offer?
Is this homework too?

topical cream