Reynolds Metals Co. v. Electric Smith Construction & Equipment Co.

Reynolds Metals Company, a Delaware corporation, planned to expand its aluminum reduction plant located in, Longview, Washington. Through its contracting agent, Bechtel Corporation, Reynolds sought bids for the fabrication and assembly of the required bus system. Electric Smith Construction & Equipment Co. was the success ful bidder. Under the terms of a “purchase order” which became the written contract, Reynolds was to supply the copper and aluminum components which Electric Smith agreed to fabricate and assemble. Reynolds agreed to pay Electric Smith for its labor and services the sum of…