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James Baird Co. v. Gimbel Bros., Inc.

United States Court of Appeals for the Second Circuit

64 F.2d 344 (1933)

Facts

Gimbel Bros, Inc. (defendant) submitted a bid to James Baird Co. (Baird) (plaintiff) and other contractors, offering to supply the linoleum for a construction contract for a quoted price. Gimbel's offer stated, among other things, that Gimbel was making the offer at the stated price "for reasonable . . . prompt acceptance after the general contract has been awarded." In calculating its offer, Gimbel had underestimated by half the amount of linoleum required for the project. Upon realizing its mistake, Gimbel sent a notice to all of the contractors that Gimbel was withdrawing the old offer and would substitute a new offer to supply the linoleum for twice the price of the original offer. Before receiving Gimbel's notice of withdrawal, Baird submitted its bid for the construction contract using Gimbel’s original quoted price. Baird was awarded the construction contract. Baird formally accepted Gimbel’s original offer two days after Gimbel’s withdrawal of the offer. Gimbel refused to recognize the contract. Baird filed suit for breach of contract. The trial court held that there was no contract, and Baird appealed to the United States Court of Appeals for the Second Circuit.

Rule of Law

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Issue

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Holding and Reasoning (Hand, J.)

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