Merchant A orally enters into a $1,000 contract with Merchant B.Merchant B will not be legally bound if she sends a confirmation,because Merchant A did not sign it,but she did object to it 3 days after she received the written confirmation.Merchant A sends out a conforming shipment the following week.The merchants have a binding agreement.

Question

Quizplus · Accepted Answer

Although Merchant A did not sign the confirmation, they did not object to it within a reasonable amount of time. According to the Uniform Commercial Code (UCC), an objection must be made within a "reasonable amount of time" after receiving the confirmation. Three days is likely considered a reasonable amount of time, and therefore Merchant B is bound by the contract. The fact that Merchant A sent out a conforming shipment also suggests acceptance of the contract.

Merchant a Orally Enters into a $1,000 Contract with Merchant