Maryland Supreme Corp. v. Blake Co.

369 A.2d 1017 (1977)

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Nature of the Case

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Facts

The Board of Education advertised for bids for the construction of the Western Heights Middle School. Blake was one of the contractors who responded. Supreme, a manufacturer of ready-mix concrete, learned through a trade journal that general contractors had bid on the job. After examination of the specifications, Supreme, as a subcontractor wrote the interested general contractors with reference to supplying the concrete required for the job. Its letter to Blake was dated March 11, 1975. The letter indicated that Supreme was pleased to submit a quote on ready mix for the school project. Supreme quoted 3,000 p.s.i. concrete at $21.00 per yard net for all the concrete on the job. Supreme also stated that this price would be guaranteed throughout the job. Blake was the successful bidder and was awarded the job as general contractor on May 24, 1975. There was no written notification by Blake to Supreme that Supreme would supply the concrete. However, Blake did verbally notify Supreme’s salesman that Supreme was to furnish the concrete for the job. Supreme began delivering on July 11, 1975, Blake was billed at $21 per yard, and everything seemed fine. However, on October 24, 1975, Supreme wrote Blake to notify of a price increase on November 1, 1975. The price was increased to $27 per yard. Blake responded with his understanding that they were just sent a form letter and that letter for a price increase did not apply to them because their price had been guaranteed. Supreme called Blake and indicated that the price increase applied to Blake as well. As of November 1, Supreme charged $27 for a yard and its last delivery was on November 13^th. Blake purchased concrete from two other sources. Supreme contends that it had made no offer in its initial letter.