Opinion ID: 3002874
Heading Depth: 2
Heading Rank: 1

Heading: Formation of a Contract

Text: Defendant’s first argument is that the magistrate judge erred in his finding of facts by holding that the parties had three oral contracts. Defendant contends that the facts do not demonstrate any acceptance of the contracts by defendant. Specifically, defendant asserts that the testimony regarding the parties’ course of dealing shows that plaintiff’s pro forma invoice was a written offer, that acceptance of the offer required 50% pre-payment, and that defendant never accepted the offer because it never paid the 50% pre-payment. However, this court cannot find that the magistrate judge clearly erred in finding that the pro forma invoice was a written confirmation of the parties’ earlier oral agreement rather than a written offer requiring payment for acceptance. Under Wisconsin law, “[a] contract for sale of goods may be made in any manner sufficient to show agreement, including conduct by both parties which recognizes the existence of such a contract.” Wis. Stat. § 402.204(1). In this case, Edmonds testified that Afifi called him and placed orders for the USB boards and the HUB boards, after which Edmonds created a pro forma invoice. Edmonds explained that in place of the purchase 10 No. 08-3282 orders defendant submitted to plaintiff at the beginning of the parties’ relationship, plaintiff had created a pro forma invoice after defendant placed an order to assure defendant knew exactly what the final invoice would look like. Edmonds further testified that the pro forma invoice was not a quotation, but occurred after the acceptance of the agreement. Moreover, both parties’ conduct indicated they had formed a contract. In response to Edmonds’ e-mail sending the pro forma invoice for the USB boards, Afifi replied affirmatively. Later in the summer, Afifi sent e-mails to Edmonds responding to a question about how he wanted the HUB boards constructed. In addition, Edmonds’ e-mails to Afifi frequently indicated that the boards were either made or being made, and the record shows no response by Afifi informing Edmonds that he did not think the parties had a contract. Although defendant argues that Afifi should be believed when he testified that the pro forma invoice was a “quote”, the trial court is entitled to significant deference as to its credibility determinations. E.C. Styberg, 492 F.3d at 917. Afifi’s testimony that he believed he had not accepted Edmonds’ offer was contradictory to the e- mails he sent to Edmonds and his overall silence in response to clear indications that plaintiff was producing his order. Defendant has not developed a separate argument as to the microprocessors, but the magistrate judge’s finding that the parties entered a third contract for 4,100 microprocessors is also supported by the record. Edmonds No. 08-3282 11 testified that Afifi verbally asked him to buy the microprocessors for the boards if he could find them for under $6.00. He further testified that when he found the microprocessors for $5.85 he obtained Afifi’s verbal authorization to purchase them. Because Edmonds needed to contract for the microprocessors quickly to maintain the price, he entered the contract and issued Afifi an invoice for 100% of the payment. Neither party testified as to a pro forma invoice for the microprocessors. Thus, it is unclear if defendant is contending the invoice was plaintiff’s offer which required 100% payment for acceptance. In any event, although Afifi denied placing any oral order, again, the magistrate judge credited Edmonds’ testimony. This testimony supports the magistrate judge’s con- clusion that the parties had an oral agreement for the microprocessors.3 Defendant is correct that the evidence reflects that up until these orders plaintiff always required a 50% down payment prior to commencing manufacture of the products. However, this fact does not necessarily indicate that the parties did not have a contract. According to Edmonds, when defendant placed an order and plaintiff orally accepted, plaintiff then created a pro forma invoice outlining the terms of the parties’ agreement. One of the terms of the agreement was 50% payment upon receipt of 3 In addition, for reasons further discussed below, defendant’s arguments regarding the microprocessors are moot, as the magistrate judge denied plaintiff any damages for defendant’s breach of the parties’ oral contract for the microprocessors. 12 No. 08-3282 the invoice. Simply because the payment terms of a contract go unfilled does not mean there is no contract. Here, the magistrate judge’s finding that there was an oral offer and acceptance is not clearly erroneous.4