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This section contains the nature of the case and procedural background.

The Commodity Credit Corporation (P) invited bids on-off condition raisins. Pearl Distilling Co. (D) responded to the bid and offered 10 cents per pound for 9599 boxes of raisins (25 pounds per box). D failed to specify where the product was to be shipped and then corrected that problem with a telegram. P responded to that telegram with the shipping information and asked for a certified check for $2,138.92. That appears to have been derived from a price of 10 cents per box and not the per pound price. The amount should have been $25,176.12. Nonetheless, D did not respond to the mistaken price telegram or a telegram that corrected the price. P then notified D that they were in breach of contract. The issue at trial was whether the mistaken substitution of ten cents per box for ten cents per pound defeat what was intended as an acceptance of D's offer.

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