Case ID: us-ct-cl_54/html/0190-01.html
Source: Caselaw Access Project
Author: {"author": "Mr. Justice McKenna", "license": "Public Domain", "url": "https://static.case.law/"}
Date Created: 2024-08-24T03:29:51.129683

THE UNITED STATES v. PURCELL ENVELOPE COMPANY.
    [51 C. Cls., 211; 249 U. S., 313.]
    Judgment was rendered in favor of the plaintiff company in the court below. On appeal the judgment was affirmed,, and the Supreme Court decided:
    In answer to an advertisement under Revised Statutes, section 3709,. claimant made the lowest bid for furnishing envelopes and. wrappers to the Post Office Department, which was duly accepted: Held, That a contract was completed with the same-force and effect as if a formal writing had been executed, and bond approved, by the department, and that the Postmaster General or his successor had no discretion to revoke it.
    Charges embodied in requests for findings that such a contract was procured by one without financial standing, by imposing on the Postmaster General, held concluded by the judgment of the Court of Claims, sustaining the contract.
    Upon the Government’s repudiation of such a contract before the time for performance has arrived, the measure of claimant’s damages is the difference between the contract price and what would have been the cost of performance.
    This court will assume that evidence touching the amount of damages, including the expense necessary to make the contractor ready (as it was found to be) for performance of its contract, was duly considered by the Court of Claims.
    A contract to furnish and deliver promptly in quantities as ordered the envelopes and newspaper wrappers that the contractor may be called upon by the Post Office Department to furnish during four years, construed as entitling the contractor to supply all needed by the department in that period.
    Motion to remand to the Court of Claims, for additional findings, denied.
   Mr. Justice McKenna

delivered the opinion of the Supreme Court March 31, 1919.