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Question
A steel supplier, a merchant, sent a signed letter to a bridge contractor stating, "We offer to sell 500 tons of grade X steel at $900 per ton. This offer will remain open for 60 days." Thirty days later, the contractor mailed a purchase order accepting the offer. The purchase order matched quantity and price but added a clause requiring disputes to be arbitrated and a clause stating that the supplier warranted the steel for five years.
The supplier responded with a signed acknowledgment stating, "Acceptance is subject to all terms on this form," and adding a disclaimer of all implied warranties and a shorter delivery window. The supplier then tried to revoke the original offer, arguing that the contractor's purchase order and the supplier's acknowledgment prevented contract formation.
Analyze whether a contract was formed and which additional or different terms are likely included.