James Baird Co. v. Gimbel Bros., Inc. Case Brief Summary | Law Case Explained
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James Baird Co. v. Gimbel Bros., Inc. | 64 F.2d 344 (1933)
In the cutthroat world of construction, a few extra dollars in a bid can mean the difference between success and failure, but bidding too low can kill any chance of profits. That’s why the contractor in the 1933 case of James Baird Company versus Gimbel Brothers was so keen on keeping a quoted price from a linoleum provider.
The Pennsylvania Department of Highways sought bids for the construction of a public building. Gimbel Brothers, a merchant, estimated the amount of linoleum the job would require and sent letters to a number of contractors. Gimmel Brothers offered to supply linoleum for the construction job at a price based on that estimate.
The James Baird Company, a contractor, received Gimbel’s offer and immediately incorporated Gimbel’s linoleum price into its bid. That same day, Gimbel discovered that its estimate was actually half what it should have been. It telegraphed all the contractors it had contacted, withdrawing its original offer and replacing it with another offer at twice the price. This telegram arrived at Baird right after it submitted its bid for the construction project. The highway department accepted Baird’s bid.
Baird insisted that it had formed a contract with Gimbel to supply linoleum at the originally stated price. Gimbel said there was no contract. Baird sued. The District Court of the United States for the Southern District of New York found that Gimbel had withdrawn its offer before Baird accepted it, and that there was thus no contract. Baird appealed.
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