Wargo Builders, Inc. v. Douglas L. Cox Plumbing & Heating, Inc

In Wargo Builders, Inc. v. Douglas L. Cox Plumbing & Heating, Inc. (1971), 26 Ohio App.2d 1, 268 N.E.2d 597, the court faced a factual scenario nearly identical to Drennan, in that the defendant subcontractor demanded additional money to perform after the plaintiff general contractor included the defendant's bid in its own bid, but before the plaintiff accepted the defendant's bid. After the defendant demanded additional money, the plaintiff accepted the defendant's original offer by sending a telegram demanding performance at the originally stated price. The court stated that the defendant's bid was an offer to perform, upon which the plaintiff reasonably and foreseeably relied in submitting its own bid. Under those circumstances, the court stated that it would be unreasonable to permit the defendant to revoke its offer until the plaintiff had a reasonable time after award of the general contract to accept the offer. Based on Drennan v. Star Paving Co. (1958), the Wargo court held that the defendant was required to keep his original offer open for a reasonable time, but that the defendant "could not be bound to perform unless the general contractor accepted the offer." Id. at 4. Thus, like in Drennan, the plaintiff's acceptance of the defendant's offer remained the paramount concern regarding whether the defendant was bound to perform. The Wargo court found sufficient circumstances to show that the plaintiff, in fact, accepted the defendant's offer, thus binding the defendant to perform and rendering the defendant liable in damages for his failure to do so.