ExpertACCA · Question 46 · Corporate and Business Law
SCENARIO 1: AeroLogistics Ltd, a cross-border freight forwarder, emails a quote to ship machinery for Zenith Manufacturing, stating 'Subject to AeroLogistics Standard Terms'. Zenith replies with a purchase order stating 'Order placed subject to Zenith Purchasing Terms'. AeroLogistics receives the order, does not object, and ships the machinery.
Under contract law, whose terms govern the contract?
SCENARIO 1: AeroLogistics Ltd, a cross-border freight forwarder, emails a quote to ship machinery for Zenith Manufacturing, stating 'Subject to AeroLogistics Standard Terms'. Zenith replies with a purchase order stating 'Order placed subject to Zenith Purchasing Terms'. AeroLogistics receives the order, does not object, and ships the machinery.
Under contract law, whose terms govern the contract?
Answer options:
AeroLogistics Ltd's terms, because they made the initial offer.
Zenith Manufacturing's terms, because their purchase order was a counter-offer which AeroLogistics accepted by performance.
Neither party's terms; the contract is void for uncertainty.
A mixture of both terms, decided by a judge based on fairness.
How to approach this question
Full Answer
Common mistakes
Practice the full ACCA LW — Corporate and Business Law Practice Exam 4
60 questions · hints · full answers · grading