On 1 July 2006, for the purpose of buying a shipment of a wooden plate, Oriental Construction Materials Company (Oriental Company) sent a purchase order to Wooden Company which contained the terms and conditions of the wooden plate, including quantity, quality, way of payment and time of shipment. The purchase order also indicated that Wooden Company should reply within 10 days upon receipt of the purchase order.On 9 July 2006 Wooden Company sent back a fax and accepted all the terms and conditions of the purchase order, and added the price of the said wooden plate. The fax indicated that Oriental Company should give its final decision within three days upon receipt of the fax.On 11 July 2006 Oriental Company replied with a fax accepting the price forwarded by Wooden Company and demanded that a written letter of confirmation was required for finally concluding a contract.On 15 July 2006 Wooden Company despatched a written confirmation letter, via a DHL package, which contained all the terms and conditions for the sales of the wooden plate as agreed upon by the two parties. The written confirmation letter also provided that the liquidated damages amounting to 10% of the total price of the goods would be borne by the breaching party as the liability for breach of contract.Just during the period of the negotiations between the two parties, the market price of the wooden plate rose quickly. Oriental Company urged Wooden Company to deliver the goods according to the terms of the written confirmation letter, which it alleged to constitute an effective contract, without any delay. However, Wooden Company insisted there was no contract at all between the parties. Under such circumstances Oriental Company filed a law suit against Wooden Company in the local court.Required:Answer the following questions in accordance with the relevant provisions of the Contract Law of China and give your reasons for your answer:
(b) Explain whether there was a contract between the two parties. (4 marks)
