U.C.C. Section 2-207: When Does an Additional Term Materially Alter a Contract?

In an effort to provide more clarity to a highly confusing area of law, Professor Timothy Davis surveyed ninety-four cases decided between January 1, 2005 and July 1, 2015 to see when additional terms in contracts constitute a material alteration under the U.C.C. The Article identifies the various factors that courts will consider to determine the issue, including (1) the subject matter of the additional term; (2) the test adopted for determining materiality; (3) the conduct of the parties; (4) the presence of course of dealing evidence; and (5) the language of comments four to U.C.C. section 2-207. Moreover, the Article focuses on six types of clauses that frequently appear as additional terms in acceptance and confirmation documents, including (1) arbitration; (2) disclaimer of warranties; (3) limitation of remedies, including consequential damages; (4) forum selection; (5) attorney fees; and (6) pre-judgment interest upon a buyer’s default. Through the extensive survey, Professor Davis concludes that, except for forum selection and pre-judgment interest clauses, courts tend to look at these issues on a case-by-case basis to determine whether or not additional terms materially alter a contract.