The Legal Environment Dimension

In allowing a party to condition its acceptance on additional terms, does contract law make negotiations more or less efficient? Explain your answer.

The Economic Dimension

We would a manufacturer like WPS want its purchase orders to include terms such as those at issue in this case? Why would a buyer like Expro or SPS want to exclude such terms?

In April 2006, WPS, Inc., submitted a formal proposal to manufacture equipment for Expro Americas, LLC, and Surface Production Systems, Inc. (SPS). Expro and SPS then submitted two purchase orders. WPS accepted the first purchase order in part, and it accepted the second order conditionally. Among other things, WPS required that, by April 28, 2006, Expro and SPS give their “full release to proceed” and agree to “pay all valid costs associated with any order cancellation.” The parties’ negotiations continued, and Expro and SPS eventually submitted a third purchase order on May 9, 2006.