Butler Machine V Ex-Cell-O Corporation Case Study

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Analysis of courts approach in cases of this nature The leading English case in Battle of the Forms is Butler Machine Tool Co v Ex-Cell-O Corporation [1979] 1 All ER 965. FACTS: Butler produced machinery tools. On the 23rd of May 1969 the plaintiff responded to an inquiry from Ex-Cell-O by offering a quotation of £74,535 worth of goods. Within the quote were Butler’s terms, that the seller’s terms would prevail over any terms submitted by a purchaser and a price variation clause. The goods were to be charged at the price ruling on the date of delivery. These goods were to be delivered in ten months time. On the 27th of May Ex-Cell-O placed an order for the machine at the stated price with their own terms. These did not include the price variation clause. Within the order was an acknowledgment slip, which was to be returned and signed by Ex-Cell-O. At the bottom of the slip, it stated “We accept your order on the terms and conditions sated therein”. Butler agreed and returned with a letter stating that the terms were to be met from the offer of the 23rd of May. Later the machinery was delivered on time with the view of getting £74,535, plus £2,892 according to their price variation clause. Ex-Cell-O refused to pay the extra, leading to Butler suing Ex-Cell-O. HELD: The offer to sell the machine on Butler’s terms was destroyed by the counter offer made by Ex-Cell-O. Since Butler signed the acknowledgment slip agreeing with the defendant’s terms, the price variation clause was

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