Drennan v. Star Paving Co.

Drennan v. Star Paving Co.
California Supreme Court
51 Cal. 2d 409, 333 P.2d 757 (1958)

Facts: Defendant, a sub-contractor, made a bid to do some paving for a contracting job. Contractor/plaintiff then made their own bid for the job and won based on their price. The next day (after the bids went through), the defendant showed up at the plaintiff's office and said there was a mistake, and they could only do it for double the price they'd bid. Since they refused to do it for less, the plaintiff shopped around and found someone who would do it for cheaper, but it was still more than the price of the defendant's original bid. Plaintiff sued the defendant for breach of contract, to the amount of the difference between their bid and what the plaintiff ultimately paid.

Procedure: Trial court found for plaintiff.

Issue: Did plaintiff's reliance make the defendant's offer irrevocable?

Holding: Yes.

Reasoning: It was analogous to a unilateral contract, i.e. substantial effort or reliance makes the contract whole. Plaintiff bound themselves to act based on the defendant's terms, so the defendant should also be bound. Affirmed.