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Law School Case Briefs

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YOUNGSTOWN STEEL ERECT. CO. v. MacDONALD ENGINEER. CO.

United States District Court N. D. Ohio, E. D (1957) | 154 F.Supp. 337

3 min read

TL;DR: A general contractor's reply to a subcontractor's bid added new terms, creating a counteroffer. The court held that the subcontractor's subsequent letter assenting to these new terms formed a binding contract, which the general contractor breached by hiring another firm.

Legal Significance: This case illustrates the common law mirror image rule, where a purported acceptance that adds or alters terms functions as a counteroffer. A binding contract is formed upon the unequivocal acceptance of that counteroffer, regardless of the parties' subjective intentions.

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