Metalworks Ltd Wishes to Purchase a Machine from Koggs Co

Multiple Choice

Metalworks Ltd wishes to purchase a machine from Koggs Co and is sent an order form, on the back of which are printed Koggs' 'terms and conditions of sale'. According to clause 127: 'all costs made in the course of repairs will be at the buyer's expense'. Metalworks enquires whether this also means the shipment costs if the machine needs to be sent to Koggs' factory for repairs. Metalworks is told that, in such an event, Koggs would cover the costs and Metalworks signs the order form. Four months later, the machine breaks down and Koggs is called to repair it. The repairman suggests to ship the machine back to Koggs' factory. Koggs returns the fixed machine to Metalworks along with an invoice which also includes the shipment costs. Metalworks protests and argues that these costs should be at Koggs' expense, whereupon Koggs reminds it of clause 127 of the contract which refers to 'all costs', making no distinction between the costs of shipment and other costs related to the repair of the machine. Does Metalworks have to pay for the shipment costs?

A) Yes, a contracting party is bound by his signature.
B) No, the term is an unreasonable one and is not binding upon Metalworks.
C) No, a contractual term cannot be incorporated if it has been misrepresented, even if the other party has signed the document.
D) Yes, a contract can only contain written terms.