Question: Knowing of a building project that required boilers, H. B. Smith, a boiler manufacturer, sent a quote for the boilers to Hazelton Manufacturing Co. Although Smith gave a retail price in some other quotes, in this quote Smith gave a "net" price of $131,711 and said there would be no discounts. When given a net price, a distributor normally marks it up to generate its profit. Instead Hazelton thought it was a retail price so followed the industry practice of discounting it.
Hazelton wrote $88,200 and "dealer cost" next to the price on the Smith form and added its name, address, and phone number. It sent these unsolicited forms to I & R Mechanical Inc. and a large number of businesses it thought might bid on the project. I & R based its bid on the project on Hazelton's $88,200 figure. I & R got the bid and called Hazelton to order the boilers. Hazelton said there was a mistake and would not sell the boilers for $88,200. I & R bought the boilers elsewhere for $140,000 and sued Hazelton for breach of contract. Did I & R and Hazelton have a contract?