Tekdata Communications Ltd v Amphenol Ltd

The traditional offer and acceptance analysis governs a battle of the forms unless the parties clearly intended otherwise.

Citation
[2009] EWCA Civ 1209, [2010] 1 Lloyd's Rep 357
Court
Court of Appeal
Year
2009
Subject
Contract Law
Topic
Offer and acceptance

Facts

Tekdata bought connectors from Amphenol for many years to make cable assemblies for Rolls-Royce. Tekdata's purchase orders stated that they were subject to Tekdata's conditions of purchase. Amphenol responded with acknowledgements of order stating that the sale was subject to Amphenol's own conditions, which limited its liability. When defective connectors caused Tekdata to lose its contract with Rolls-Royce, Tekdata claimed damages, and the question was whose terms applied. The judge held that, because of the parties' long course of dealing and the underlying arrangements, they must have intended Tekdata's terms to govern.

Legal principle

The Court of Appeal allowed Amphenol's appeal and held that Amphenol's terms applied. Following Butler Machine Tool, the traditional offer and acceptance analysis should normally be applied in a battle of the forms, so Amphenol's acknowledgement was a counter offer accepted by Tekdata when it took delivery of the goods. Longmore LJ said that the traditional rule could be displaced only where the documents passing between the parties and their conduct showed a clear common intention that some other terms were to prevail, and that was not shown here. The decision emphasises the value of certainty in commercial dealings.

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