Legal Environment of Business 8th Edition by Henry Cheeseman

Exercise 4

Firm Offer Gordon Construction Company (Gordon) was a general contractor in the New York City area. Gordon planned on bidding for the job of constructing two buildings for the Port Authority of New York. In anticipation of its own bid, Gordon sought bids from subcontractors. E. A. Coronis Associates (Coronis), a fabricator of structured steel, sent a signed letter to Gordon. The letter quoted a price for work on the Port Authority project and stated that the price could change, based upon the amount of steel used. The letter contained no information other than the price Coronis would charge for the job. One month later, Gordon was awarded the Port Authority project. Four days later, Coronis sent Gordon a telegram, withdrawing its offer. Gordon replied that it expected Coro-nis to honor the price that it had previously quoted to Gordon. When Coronis refused, Gordon sued. Gordon claimed that Coronis was attempting to withdraw a firm offer. Who wins? E. A. Coronis Associates v. Gordon Construction Co., 90 N.J. Super. 69, 216 A.2d 246, Web 1966 N.J.Super. Lexis 368 (Superior Court of New Jersey)