Base Metal Co. wrote a letter to Steel Manufacturing Co. on May 2 offering to sell it 350tonsof rolled steel at $2,200 perton. Steel Manufacturing Co. received the letter on May 3. A few weeks later, the President of Steel Manufacturing Co. checked the price of the particular type of steel and discovered that the market price had risen to $2,280 perton. On May 22, Steel Manufacturing Co. wrote Base Metal Co., accepting the offer. Armstrong Metal Co. did not receive Steel Manufacturing Co.'s letter until May 30. Base Metal Co. refused to sell the steel to Steel Manufacturing Co. at $2,200 perton, but expressed a willingness to sell at the current market price of $2,310 perton.

Steel Manufacturing Co. instituted legal proceedings against Base Metal Co. for breach of the contract that it alleged existed between them.

Discuss the rights (if any) and the liabilities (if any) of the parties, and render a decision.