What happens when one merchant adds an additional term in a UCC contract?

Under the Uniform Commercial Code (UCC), when one party to a contract is a merchant and adds an additional term in their acceptance, the additional term can become part of the contract under specific conditions. According to the UCC, a contract can be formed even with additional terms, as long as those terms are not deemed to materially alter the original agreement and are not objected to by the other party.

When the additional term is consistent with the purpose of the original contract and the other party does not explicitly reject it, it typically becomes part of the contract. This principle allows for flexibility in commercial transactions and is aimed at facilitating business operations without necessitating an entire renegotiation or extensive agreement processes for minor adjustments.

This approach contrasts with traditional contract law, which demands a "meeting of the minds" on all terms. In the context of the UCC, the framework acknowledges the realities of commercial practices where certain terms may evolve or be added during negotiations without obstructing the formation of the agreement. Therefore, the correct answer reflects this understanding of how additional terms function within the UCC framework.