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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)


(Gimbel) (defendant) submitted a subcontractor bid to James Baird Co. (Baird) (plaintiff) and other contractors, offering to supply the linoleum for a construction contract for a quoted price. Baird submitted its bid for the construction contract, using Gimbel’s quoted price. Gimbel, in calculating its offer, had underestimated the size of the contract by 50%. Upon realizing this, but not before Baird had submitted its bid, Gimbel retracted its offer and submitted a new offer that quoted a price approximately twice the original. Baird was awarded the construction contract based upon Gimbel’s original price. 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. The trial court held that there was no contract. Baird appealed to the United States Court of Appeals for the Second District.

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Holding and Reasoning (Hand, J.)

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