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Without 'meeting Of The Minds,' Counteroffer Doesn't Establish Contract Acceptance Or Right To P

Friday, April 04, 2008 02:40 pm

 
Without 'meeting Of The Minds,' Counteroffer Doesn't Establish Contract Acceptance -- Or Right To Payment

An appeals court's affirmation of a summary judgment order relieved a general contractor from the obligation to pay for project materials a subcontractor had already delivered.

In 2004, general contractor McKnight Construction Co. (McKnight) subcontracted with Houston Steel (Houston) for steel erection and fabrication on construction of a library at Georgia Southern University in Statesboro, Georgia. Steel supplier South Central Steel (South Central) entered the picture when Houston was unable to acquire the necessary supply, and a dispute over payment landed South Central and the general contractor in court.

Specifically, South Central claimed that McKnight was obligated to pay for damages as well as more than $51,000 for steel supplied to the project in early 2005. South Central supplied the steel at Houston's request and with knowledge of the financial problems that prevented Houston from purchasing the necessary steel on its own account.

The case hinged on whether McKnight and SCS had in fact entered into a contract -- specifically, whether a counterof [...]

 
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