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Contractor was competing on a bid for certain work for the Florida Department of Transportation. The critical component of the bid was to obtain the least expensive fill material. Naturally, the two local Suppliers could provide this inexpensive fill material. Of the seven bidders, only the Contractor was in contact with both Suppliers.
The problem was, Contractor only used one supplier once it got the contract. The spurned Supplier sued the Contractor alleging breach of oral contract, among other things. The Contractor objected, arguing that a bid is not a contract. The trial court agreed.
The appellate court disagreed. Under Florida law, an oral contract is formed if the parties mutually assent to a certain and definite proposition, and left no essential terms open. The Supplier alleged an agreement to price, quantity, and quality. The appellate court allowed the Supplier to proceed with its claim.
Moral: Sometimes talk ain't cheap. W.R. Townsend Contracting, Inc. v. Jensen Civil Construction, Inc., 728 So.2d 297 (Fla. 1DCA 1999). |
