Opinion ID: 75752
Heading Depth: 3
Heading Rank: 2

Heading: The Intent Behind the FPOs

Text: 15 ISN presents a second theory of contract formation: the City intended to accept ISN's offer when it issued the FPOs which authorized ISN to begin work. 3 The cardinal rule of contract construction is to ascertain the intent of the parties and to interpret a contract so that the parties' intentions are given effect. Sheridan v. Crown Capital Corp., 251 Ga. App. 314, 316, 554 S.E.2d 296, 299 (2001). While [t]he construction of a contract is a question of law for the court, O.C.G.A. § 13-2-1, a jury question is presented when the rules of construction fail to resolve an ambiguity regarding the terms of a contract. Andrews v. Skinner, 158 Ga. App. 229, 230, 279 S.E.2d 523, 525 (1981). Under such circumstances, the intent of the parties becomes a question of fact for the jury. Williams v. McCoy Lumber Indus., Inc., 146 Ga.App. 380, 383, 246 S.E.2d 410, 412 (1978). 16 The district court found that the City intended that the FPOs serve as offers, and that ISN accepted those offers through performance. After a de novo review, however, we conclude that the City's intent is material fact in genuine dispute. There are substantial questions of fact remaining such that judgment as a matter of law at this juncture is legally impermissible. 17 The City' argument is based on the legal principle that an offer must be accepted unequivocally for a contract to form. State Highway Dep't. v. Wright Contracting Co., 107 Ga.App. 758, 766, 131 S.E.2d 808, 813 (1963). If a party purportedly accepts an offer, but changes a term, then the party has actually generated a counteroffer. Id. at 765, 131 S.E.2d at 813. The City points to five FPOs, each of which requests named services for a sum certain. 4 Based on the difference in scope between the services requested in the FPOs and the services offered in ISN's proposal, the City argues that the FPOs were counteroffers. Furthermore, the City points to the provision in the Notice of Award which states that all work must be authorized by an FPO. 18 On cursory review, summary judgment for the City appears reasonable. The facts as presented by ISN, however, substantially undermine the City's argument. Because the City has moved for summary judgment, the facts must be interpreted in the light most favorable to ISN. Burton, 178 F.3d at 1187. First of all, ISN points to FPO # 0098310463, an FPO conspicuously absent from the City's brief, which uses the words Blanket Order for Year 2000(Y2K) Program Management. R6-59 Exh.23. This FPO calls for inventory and assessment services as well, and lists .00 for the cost. 5 Id. This FPO supports ISN's argument that the agreement between the parties was a more global contract for Y2K remediation, and not just a series of smaller contracts for discrete work projects. 6 19 ISN further undermines the City's argument by pointing to the scarcity of detail in the FPOs. Under the City's theory, a contract was formed each time the City issued an FPO and ISN performed. No contract can form, however, without certainty of terms. 7 The requirement of certainty extends not only to the subject matter and purpose of the contract, but also to the parties, consideration, and even the time and place of performance where these are essential. Laverson v. Macon Bibb County Hosp. Auth., 226 Ga.App. 761, 762, 487 S.E.2d 621, 623 (1997). We begin with the element of subject matter, and immediately see a problem with the City's argument that the FPOs were offers. The FPOs provide ISN with little guidance as to the work requested; FPO # 3098210694 lists the parties, the anticipated completion date 8 and the price, but information regarding the nature of the work requested is limited to Re State Contract # SWC 80701/ BMIS/0S30. R5-54 Exh.C. The rest of the document consists of the standard contract terms included in every FPO issued by the City. A contract must have enough certainty that each party has a cause of action for breach. Laverson, 226 Ga.App. at 762, 487 S.E.2d at 623. Indeed, indefiniteness in subject matter so extreme as not to present anything upon which the contract may operate in a definite manner renders the contract void. Peachtree Med. Bldg., Inc. v. Keel, 107 Ga.App. 438, 441, 130 S.E.2d 530, 532 (1963). 20 The certainty required for contract formation, argues ISN, comes from the ISN's proposal: it is only with those details that the agreement becomes a contract. The Statewide Contract supports ISN's argument, providing that 21 The Notice of Award, the Notice of Award Amendment, contract, this revised contract, the RFP [Request for Proposals] ... and Contractor's Proposal (and any documents referenced therein) submitted in response thereto, including any best and final offer, are incorporated by reference into this revised Contract (and any FPO issued pursuant to this Contract) and form an integral part of this Contract and any FPOs. 22 R6-59 Exh.9 (emphasis supplied). ISN's proposal supplies the information necessary for a contract to form: the nature, cost, and timing of particular Y2K remediation services. While a conflict between documents drafted by the City and those drafted by ISN should be resolved in favor of the City, see R6-59 Exh.9, there is not necessarily a conflict in this case. Instead, ISN's proposal serves as a supplement. While the absence of conflict is particularly apparent in FPO # 0098310463, the blanket order for Y2K program management, each of the City's FPOs can — and indeed must — be read in concert with ISN's proposal. Only by reading the documents together is the requirement of certainty satisfied. 23 Lastly, ISN alleges that the City's reason for terminating the contract was not dissatisfaction with services rendered, but rather ISN's refusal to hire a particular minority subcontractor favored by Commissioner McCall. Not enough facts have been developed to treat ISN's argument, but we find the allegation troubling. We conclude that ISN has demonstrated that a genuine issue of material fact exists regarding the role of the FPOs in contract formation, and reverse the district court's order of summary judgment for the City.