Opinion ID: 564982
Heading Depth: 3
Heading Rank: 1

Heading: Was the contract sufficiently definite?

Text: 35 TSL argues that the parties intended to license the copies of the program, and that several critical terms could only be determined by referring to the box-top license. Pressing the point, TSL argues that it is impossible to tell, without referring to the box-top license, whether the parties intended a sale of a copy of the program or a license to use a copy. TSL cites Bethlehem Steel Corp. v. Litton Industries in support of its position that any contract defined without reference to the terms of the box-top license would fail for indefiniteness. 21 36 From the evidence, it appears that the following terms, at the least, were discussed and agreed to, apart from the box-top license: (1) the specific goods involved; (2) the quantity; and (3) the price. TSL argues that the following terms were only defined in the box-top license: (1) the nature of the transaction, sale or license; and (2) the warranties, if any, available. TSL argues that these two terms are essential to creating a sufficiently definite contract. We disagree. Section 2-204(3) of the UCC provides: 37 Even though one or more terms are left open a contract for sale does not fail for indefiniteness if the parties have intended to make a contract and there is a reasonably certain basis for giving an appropriate remedy. 38 Unlike the terms omitted by the parties in Bethlehem Steel Corp., the two terms cited by TSL are not gaping holes in a multi-million dollar contract that no one but the parties themselves could fill. 22 First, the rights of the respective parties under the federal copyright law if the transaction is characterized as a sale of a copy of the program are nearly identical to the parties's respective rights under the terms of the box-top license. 23 Second, the UCC provides for express and implied warranties if the seller fails to disclaim expressly those warranties. 24 Thus, even though warranties are an important term left blank by the parties, the default rules of the UCC fill in that blank. 39 We hold that contract was sufficiently definite without the terms provided by the box-top license. 25 40