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MMLU / A contractor learned that a city intended to open a new grammar school and was…
Problem
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question
A contractor learned that a city intended to open a new grammar school and was going to ask for bids to construct the school. The contractor decided to submit a bid to do the construction. The contractor contacted all of the subcontractors she had worked with in the past, informed them of the specifics of the school construction project, and asked each to submit a bid for the work they would be requested to perform. An insulation company submitted a bid of 30,000 to do the insulation. Which of the following arguments best supports the claim for $5,000 by the contractor against the insulation company?
Plain-text mathematical notation (without MathML)
A contractor learned that a city intended to open a new grammar school and was going to ask for bids to construct the school. The contractor decided to submit a bid to do the construction. The contractor contacted all of the subcontractors she had worked with in the past, informed them of the specifics of the school construction project, and asked each to submit a bid for the work they would be requested to perform. An insulation company submitted a bid of 25,000todotherequiredinsulationworkinthenewschool.Basedonthatandothersubcontractbids,thecontractorpreparedageneralbidandsubmittedittothecity.Threedaysafterthecontractorsubmittedthebidtothecity,theinsulationcompanynotifiedthecontractorthatithadoverbookeditsworkforceandwouldbeunabletoperformtheinsulationwork.Thenextday,thecitynotifiedthecontractorthatshehadwonthebidtobuildtheschool.Thecontractorwasforcedtofindanothercompanytodotheinsulationwork.Theothercompanychargedthecontractor30,000 to do the insulation. Which of the following arguments best supports the claim for $5,000 by the contractor against the insulation company?
Original LaTeX notation
A contractor learned that a city intended to open a new grammar school and was going to ask for bids to construct the school. The contractor decided to submit a bid to do the construction. The contractor contacted all of the subcontractors she had worked with in the past, informed them of the specifics of the school construction project, and asked each to submit a bid for the work they would be requested to perform. An insulation company submitted a bid of $25,000 to do the required insulation work in the new school. Based on that and other subcontract bids, the contractor prepared a general bid and submitted it to the city. Three days after the contractor submitted the bid to the city, the insulation company notified the contractor that it had overbooked its workforce and would be unable to perform the insulation work. The next day, the city notified the contractor that she had won the bid to build the school. The contractor was forced to find another company to do the insulation work. The other company charged the contractor $30,000 to do the insulation. Which of the following arguments best supports the claim for $5,000 by the contractor against the insulation company?
choices
- The contractor had made an offer to the insulation company that the latter accepted when it submitted its bid.
- The insulation company had made an offer that the contractor accepted by using the insulation company's bid in computing the bid it submitted to the city.
- The insulation company's bid was an offer that it was obligated to hold open, because the insulation company and the contractor were merchants.
- An option contract was created, because the contractor used the insulation company's bid in computing the bid it submitted to the city and notified the insulation company of that fact.
subject
professional_law
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