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Contracts Keyed to Whaley
James Baird Co. v. Gimbel Bros.
Citation:64 F.2d 344 (2nd. Cir. 133).
ProfessorMelissa A. Hale
CaseCast™ – "What you need to know"
Defendant knew that the Department of Highways in Pennsylvania had asked for bids to construct a public building. It sent an employee to compute the amount of linoleum which would be required for the job. Defendant then sent out sub-bids to supply all of the linoleum required for the job to contractors. The employee, however, incorrectly underestimated the amount of linoleum required.
Defendant learned of the mistake and sent a withdrawal. Plaintiff, however, already submitted its main bid for the highway project, relying on Defendant’s offer. Plaintiff’s offer was accepted. Plaintiff then sued to enforce Defendant’s bid.
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