Quake Construction, Inc. v. American Airlines, Inc.

Quake Construction, Inc. v. American Airlines, Inc. -...

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Contracts 9/24/08 Mutual Assent Quake Construction, Inc. v. American Airlines, Inc., Illinois Supreme Court, 1990 Facts : American Airlines hired Jones Construction to prepare bid specifications, accept bids, and award contracts for construction of an expansion of American’s facilities at O’Hare Airport in Chicago. Quake received an invitation to bid and submitted a bit to Jones in April, 1985. Jones orally notified Quake that Quake had been awarded the contract and would eventually receive a written contract. The letter of intent, dated April, 18 1985 stated… and included a cancellation clause “Jones Brothers reserves the right to cancel this letter of intent if the parties cannot agree on a fully executed subcontract agreement.” On April 25, Jones told Quake that they would be the general contractor. Later that day, American and Jones told Quake that their involvement was terminated. Evidence of intent: (1) included detailed terms of the parties’ agreement; (2) said Jones awarded the contract for the project to Quake; (3) “this notice of award authorizes the work; (4) work was to commence 4-11 days later – this short period of time indicates parties’ intent to be bound by the letter so work could begin on schedule; (5) cancellation clause – wouldn’t be necessary unless intended to be bound. Evidence of no intent: (1) referred several times to the execution of a formal contract; (2)
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This note was uploaded on 04/10/2011 for the course LAW 501 taught by Professor Roy during the Fall '08 term at Ole Miss.

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Quake Construction, Inc. v. American Airlines, Inc. -...

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