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Contracts Keyed to Barnett
James Baird Co. v. Gimbel Bros., Inc.
Citation:
64 F.2d 344 (2d Cir. 1933)ProfessorMelissa A. Hale
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Facts
Gimbel Bros. heard of a new highway construction project in Pennsylvania and sent an employee to compute the amount of linoleum required for the job. That employee incorrectly underestimated the required amount of linoleum by one half of the actual required amount. Ignorant of this fact, Gimbel Bros. sent out bids to supply all of the linoleum required for the job to contractors.
Gimbel Bros. learned of its mistake and sent a withdrawal, but not before James Baird submitted a bid for the highway construction project in reliance on their bid. Pennsylvania’s public authorities then accepted James Baird’s bid, which James Baird accepted despite then having knowledge of Gimbel Bros.’ withdrawal.
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Formation of Contracts