In a battle of the forms between merchants, when an acceptance includes additional terms, those terms become part of the contract unless they would materially alter the contract or the offeror objects. Which statement best describes the effect if both parties are merchants and the terms do not materially alter the agreement?

• A. The terms become part of the contract
• B. The terms are disregarded unless both parties approve
• C. The contract becomes void
• D. The contract requires explicit written assent to the terms

Answer: (A)

In the battle of the forms, when both sides are merchants and an acceptance includes extra terms, those terms typically become part of the contract unless they would materially alter the agreement or the offeror objects. Here, both parties are merchants and the added terms do not materially change what was agreed. That means the additional terms are incorporated into the contract alongside the original terms. The result is a contract that includes the original terms plus the new, non-material terms. If the terms had altered the deal in a material way or if the offeror had objected within a reasonable time, they would not be included.