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

64 F.2d 344 (1933)

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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)

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Facts

Gimbel Bros., Inc. (Gimbel) (defendant), a linoleum supplier, learned of a construction project being contemplated by the State of Pennsylvania. Gimbel identified the general contractors likely to bid for the project, including James Baird Co. (Baird) (plaintiff). Gimbel then sent those contractors quotes for linoleum, stating that Gimbel would provide all the linoleum for the project at a stated price if Gimbel’s offer was accepted by the winning bidder promptly after the project was awarded. In calculating its offer, Gimbel underestimated the amount of linoleum required by half. Upon realizing its mistake, Gimbel telegraphed notice to all contractors that Gimbel was withdrawing the offer and would substitute a new offer for twice the price. On the same day, but before receiving Gimbel’s notice of withdrawal, Baird submitted its bid for the Pennsylvania project using Gimbel’s original quoted price. Baird was awarded the construction contract and formally accepted Gimbel’s original offer two days after receiving a letter confirming Gimbel’s withdrawal of the offer. Gimbel refused to recognize a binding contract with Baird and did not supply the required linoleum. Baird sued Gimbel 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

Issue

Holding and Reasoning (Hand, J.)

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