Facts
Butler Machine Tool Co Ltd made and sold machine tools. They sent a letter to Ex-Cell-O on May 23 1969 offering Ex-Cell-O some new machinery for £75,535. With it, was Butler's standard contract terms. It included a price variation clause, so that if their manufacturing costs went up, that price rise would be passed on to Ex-Cell-O. Ex-Cell-O replied on May 27 and said they would order the machinery, but on Ex-Cell-O's own standard terms. Ex-Cell-O's standard terms did not have a price variation clause. Butler replied on June 5. It replied on the tear-off slip from Ex-Cell-O's terms. At the bottom of this slip it read, "We accept your order on the terms and conditions stated therein." But Butler added a letter reasserting that the deal was being made under Butler's own terms, from the May 23 letter. A while later, nothing further had been said, and Butler delivered the machinery. They asked for £75,535, plus £2,892 according to their price variation clause. Ex-Cell-O refused to pay the extra. Butler sued Ex-Cell-O.
Read more about this topic: Butler Machine Tool Co Ltd V Ex-Cell-O Corp Ltd
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