Material Alteration In Sales Contracts
Billy's bakery enters into an agreement with Fred's flour company to purchase 50 pounds of gluten-free flour. Billy sends a purchase order, and Fred responds with an acknowledgment form. However, Fred's acknowledgment specifies the sale of regular baking flour. Under the Uniform Commercial Code (UCC), which of the following is true regarding this transaction?
A
Fred's differing terms materially alter Billy's offer, meaning Billy's original terms govern the contract.
B
Fred's differing terms do not materially alter Billy's offer, so Fred's terms will apply provided he ships the flour.
C
A valid sales contract was not formed because Fred's acknowledgment did not mirror Billy's offer.
D
Because Fred is the supplier, the UCC permits him to unilaterally update the contractual terms as he deems necessary.