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Maryland Supreme Corporation v. The Blake Company
Court of Appeals of Maryland
279 A.2d 1017 (Md. 1977)
Blake Company (Blake) (defendant) was a general contractor, and Maryland Supreme Corporation (Supreme) (plaintiff) was a sub-contractor. After learning that Blake intended to submit a bid for a construction contract, Supreme sent Blake a letter indicating that it could provide specific materials at a certain price for the duration of the construction project. The letter specifically stated that Supreme could guaranty the price. Blake was the successful bidder, and Blake chose Supreme as the materials supplier. During the course of construction, Supreme raised the materials’ price above the price quoted in the letter. Blake opposed the price increase and procured a new supplier. The price Blake paid the new supplier exceeded the price Blake would have had to pay Supreme. As a result, Blake withheld a portion of the money it owed Supreme. Supreme sued Blake in general assumpsit, and Blake counterclaimed for breach of contract. The trial court found in favor of Blake, and Supreme appealed.
Rule of Law
Holding and Reasoning (Orth, J.)
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