Merritt-Chapman and Scott Corporation, a Delaware Corporation v. Gunderson Bros. Engineering Corporation, an Oregon Corporation

The appeal in this diversity case tests the correctness of the trial court’s determination that there was evidence from which the jury could find that a contract existed between appellant (MCS) and respondent (Gunderson).

The material facts are substantially undisputed. Early in 1956, Public Utility District No. 2 of Grant County, Washington (P.U.D.), advertised for bids to construct Priest Rapids Dam on the Columbia River at Ephrata, Washington. Prior to March 10, 1956, MCS informed Gunderson that it was preparing to bid as general contractor on Priest Rapids Dam. MCS requested Gunderson to bid on several parts of the project, including Items 8.1 and 8.6, which concerned spillway and draft tube gates.

In response to this request, Gunderson on March 10, 1956, submitted a written quotation which was, so far as material here, substantially as follows: Item 8.1: Deliver F.O.B. barge, nearest navigable point to job site, 22 spillway gates, less hoists, anchorages and embedded materials for the lump sum price of $1,093,-004.00. Item 8.6: Deliver in same manner 6 draft tube gates for a price of $80,-032.00. Under each heading, there was also a lesser figure for rail delivery. The…