Asked by Hassan ibrahim on Apr 29, 2024
Verified
Carl and Ron both work in road construction. They know that two major jobs are going to be up for public bids, and agree between themselves that Carl will bid on one job and Ron will bid on the other, so that they both have work for the summer. When the bids are opened, Carl realizes that Ron has bid on both jobs. Ron is awarded both contracts. If Carl now wants to sue Ron for breach of contract:
A) Carl would probably win on the basis of promissory estoppel since he has detrimentally relied upon Ron's representation that he would not bid.
B) since Carl is less at fault than Ron, the court will likely award Carl damages.
C) the agreement will not be enforced by the courts because it violates public policy.
D) the agreement will not be enforced by the courts because it obstructs the administration of justice.
Public Policy
Principles and standards considered to be in the public's interest by governing bodies and law.
Promissory Estoppel
A legal principle that prevents a party from reneging on a promise when the other party has reasonably relied on that promise to their detriment.
Administration of Justice
The process by which a legal system operates and enforces laws, ensuring fairness and resolving disputes.
- Recognize unlawful agreements and contracts that contravene public policy.
Verified Answer
SK
Sudhakar KanagalaApr 30, 2024
Final Answer :
C
Explanation :
The agreement between Carl and Ron is a form of collusion that restricts fair competition and violates public policy, making it unenforceable in court.
Learning Objectives
- Recognize unlawful agreements and contracts that contravene public policy.