United Iron Works v. Outer Harbor Dock & Wharf Co.

This action was brought to recover the unpaid part of the purchase price of a dredge constructed by plaintiff for defendant. Defendant needed a dredge to deepen a portion of the harbor of San Pedro in aid of its dock and wharf business. The purpose for which the dredge was to be used and the place where it was to be used were well understood by the parties. Plaintiff had in a letter designated “D” made an offer to construct dredges of different capacity and design for different prices. This letter concluded with the following statement: “We have looked at your grounds and have designed you a…