Maryland Supreme Corporation v. The Blake Company
Court of Appeals of Maryland
279 A.2d 1017 (Md. 1977)
Before Blake Company (Blake) (defendant), a general contractor, bid on a construction project, Maryland Supreme Corporation (Supreme) (plaintiff), a materials supplier, sent Blake a letter guaranteeing a specific product at a specific price for the entire project's duration. Blake won the bid and selected Supreme as its supplier, but Supreme later raised its prices above the letter's quote; Blake refused the increase, found a costlier replacement supplier, and withheld money it owed Supreme to cover the difference. Supreme sued for the withheld payment, and Blake counterclaimed for breach of contract based on the guaranteed price; the trial court sided with Blake, and Supreme appealed.
Whether a guaranty of a certain product at a certain price for a specific duration constitutes an offer capable of acceptance.