Al's Alloys Ltd. wrote a letter to Sally's Sidings Co. on June 2 offering to sell it 350 tonnes of rolled steel at $3,200 per tonne.Sally's Sidings Co. received the letter on June 3.

A few weeks later, the President of Sally's Sidings Co. checked the price of the particular type of steel and discovered that the market price had risen to $3,280 per tonne.On June 22,Sally's Sidings Co. wrote to Al's AlloysLtd., accepting the offer.Al's AlloysLtd. did not receiveSally's Sidings Co.'s letter until June 30.

Al's wrote back to Sally,refusing to sell the steelat $3,200 per tonne, but expressed a willingness to sell at the current market price of $3,310 per tonne.

Sally's SidingsCo. instituted legal proceedings againstAl's AlloysLtd. for breach of the contract that Sally alleged existed between the two companies.