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Contracts Keyed to Frier
B & W Glass v. Weather Shield Mfg.
Citation:
829 P.2d 809 (1992)Facts
Plaintiff contacted Defendant to obtain a price quote for a new project. A salesman for Defendant called Plaintiff and provided a price quote for the windows. Plaintiff never received written confirmation of this oral price quotation. However, relying on this quote, Plaintiff submitted its bid to the project’s general contractor who accepted the bid. Plaintiff contacted the salesman for Defendant to tell him that Plaintiff’s bid had been approved and that Plaintiff would purchase Defendant’s windows for the project. Plaintiff met with the salesman to review the plans and specifications in detail. Plaintiff then signed a contract with the project’s general contractor. When Plaintiff failed to receive drawings that had been promised by the salesman, Plaintiff spoke with a supervisor of Defendant who said that Defendant would not be producing the windows. Plaintiff then obtained windows from another manufacturer for over twice the price that Defendant’s salesman had quoted. Defendant refused to pay Plaintiff the difference between Defendant’s quoted price and the actual cost of the windows purchased from the other manufacturer.
Plaintiff sued Defendant in state court for breach of contract. Defendant removed the case to federal court. The trial court found that the salesman was an authorized agent of Defendant. The court also held that, the oral agreement between Plaintiff and Defendant was enforceable in spite of the statute of frauds because promissory estoppel had been established. The court entered judgment against Defendant for breach of contract. Defendant appealed the case. The appeals court certified the question of the enforceability of oral contracts to the state supreme court.
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Formation of Contracts