The Food Company B.v., a company established in Holland makes an offer to Ulbricht GmbH, a company established in Germany concerning the sale and delivery of a high tech machine for the production of food. In the offer, Food Company includes a copy of their terms of sale and delivery. Ulbricht GmbH sends its acceptance of the offer containing their terms of sale and delivery, which differ on various points from the terms of sale and delivery of Food Company. Problems arise when, after delivery, the machine does not function properly and several leaks in the hydraulic system, causing severe pollution of the products and physical damage to consumers. Food Company states that they have excluded all liability for this kind of damage in their terms of sale and delivery and so they are not liable in any way. According to the terms of sale of Ulbricht GmbH Food Company is responsible for this kind damage.
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