Contracts Keyed to Crandall
Commerce & Industry Ins. Co. v. Bayer Corp.
The defendant entered into a contract with a third party for the sale of nylon and the third party sent a purchase order to the defendant, which contained an arbitration provision. However, the invoice retuned to the defendant by the third party did not mention the arbitration clause and was expressly conditioned on the defendant’s assent to any additional or conflicting terms in the invoice. After a fire destroyed the third parties building, the plaintiff who insured the third party, sued the defendant claiming their nylon was the cause of the fire. The defendant claimed the arbitration clause in the purchase order was controlling and thus the dispute should be submitted to arbitration.
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