Asked by Jason Fraser on May 21, 2024
Verified
Austen Construction,a general contractor,advertised for bids from subcontractors on the electrical work for the renovation of one of State University's parking structures.The advertisement announced that the contract would be awarded to the lowest responsible bidder.Bronte,a responsible electrical subcontractor,submitted the lowest bid to Austen for the electrical portion of the work.Austen informed Bronte that she should begin work immediately.Bronte then stated that she is "withdrawing" her bid from Austen.Which of the following statements is most accurate?
A) Austen should not rely on Bronte's offer to do the electrical work.
B) Austen accepted Bronte's offer,thereby forming a contract.
C) Austen is not bound by Bronte's bid until he informs her of his intent to accept.
D) Bronte has accepted Austen's offer by submitting the lowest bid.
Electrical Portion
The part of a system or device that pertains to or operates through the use of electricity.
Lowest Bid
The least amount of money offered by a contractor to complete a specified project or job in a bidding process.
- Understand the legal consequences associated with advertisements and bid solicitations under contract law.
- Understand the consequences of acts including rejection, revocation, and acceptance on the sustainability of an offer.
Verified Answer
KP
Keval PatelMay 27, 2024
Final Answer :
D
Explanation :
If the advertisement for bids unconditionally states that the contract will be awarded to the lowest responsible bidder,this will be treated as an offer that is accepted by the lowest bidder.Only proof by the offeror that the lowest bidder is not responsible can prevent the formation of a contract.
Learning Objectives
- Understand the legal consequences associated with advertisements and bid solicitations under contract law.
- Understand the consequences of acts including rejection, revocation, and acceptance on the sustainability of an offer.