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Contracts Keyed to Knapp
Quake Construction, Inc. v. American Airlines, Inc.
ProfessorMelissa A. Hale
CaseCast™ – "What you need to know"
Facts
The Defendant was expanding its facilities at O’Hare International Airport. Jones was hired by the Defendant to prepare bid specifications, accept bids, and award construction contracts. The Plaintiff submitted a bid to Jones. Jones notified the Plaintiff orally that the Plaintiff had been awarded the contract. The Plaintiff was informed that a written contract prepared by Jones would be received shortly. To aid the Plaintiff in securing subcontractors, Jones sent the Plaintiff a letter of intent. The letter of intent indicated that a written contract would be prepared and that Jones could cancel the letter of intent if the parties failed to agree on a fully executed subcontract agreement. The Plaintiff and Jones discussed changes to the contract and Jones again told the Plaintiff that a written contract would be drawn up. At a meeting with the Plaintiff’s subcontractors and government officials, Jones announced that the Plaintiff would be the general contractor for the project. Immediately following the meeting, the Defendant told the Plaintiff that their involvement with the expansion was terminated.
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