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question
A developer recently acquired a large vacant lot and wished to build a series of 10 tract homes on the lot to offer for sale. On May 1, he telephoned a number of contractors whom he had dealt with in the past and asked them to submit bids to build the homes. One of the contractors in turn sought bids from several subcontractors to determine the overall cost of the job. He notified each subcontractor that he intended to use their bids in submitting a general bid to the developer. A plumber submitted a bid to the contractor in the amount of 500,000. On June 4, the plumber notified the contractor that he had overbooked his crews and could not possibly do the work on the developer's job. On June 5, the developer sent the contractor a signed confirmation letter wherein he stated, "I hereby accept your offer to build the 10 tract homes for
$500,000. ', Thereafter, the contractor hired another plumber to complete the plumbing work at a cost of $60,000. The contractor then explained the situation to the developer and requested that the overall cost of the job be increased to 500,000 and that this was the contractor's problem. The contractor then built the 10 tract homes, and the developer sent him a check for 10,000 by the contractor against the plumber who refused to do the work?Plain-text mathematical notation (without MathML)
A developer recently acquired a large vacant lot and wished to build a series of 10 tract homes on the lot to offer for sale. On May 1, he telephoned a number of contractors whom he had dealt with in the past and asked them to submit bids to build the homes. One of the contractors in turn sought bids from several subcontractors to determine the overall cost of the job. He notified each subcontractor that he intended to use their bids in submitting a general bid to the developer. A plumber submitted a bid to the contractor in the amount of 50,000,whichthecontractorusedincomputingthebidhesenttothedeveloper.OnJune1,thecontractorsubmittedabidtothedeveloperinwhichheofferedtobuildthe10tracthomesfor500,000. On June 4, the plumber notified the contractor that he had overbooked his crews and could not possibly do the work on the developer's job. On June 5, the developer sent the contractor a signed confirmation letter wherein he stated, "I hereby accept your offer to build the 10 tract homes for $500,000. ', Thereafter, the contractor hired another plumber to complete the plumbing work at a cost of $60,000. The contractor then explained the situation to the developer and requested that the overall cost of the job be increased to 510,000.Thedeveloperrefusedonthegroundsthathehadacontractfor500,000 and that this was the contractor's problem. The contractor then built the 10 tract homes, and the developer sent him a check for 500,000.Whichofthefollowingbestsupportsaclaimfor10,000 by the contractor against the plumber who refused to do the work?
Original LaTeX notation
A developer recently acquired a large vacant lot and wished to build a series of 10 tract homes on the lot to offer for sale. On May 1, he telephoned a number of contractors whom he had dealt with in the past and asked them to submit bids to build the homes. One of the contractors in turn sought bids from several subcontractors to determine the overall cost of the job. He notified each subcontractor that he intended to use their bids in submitting a general bid to the developer. A plumber submitted a bid to the contractor in the amount of $50,000, which the contractor used in computing the bid he sent to the developer. On June 1, the contractor submitted a bid to the developer in which he offered to build the 10 tract homes for $500,000. On June 4, the plumber notified the contractor that he had overbooked his crews and could not possibly do the work on the developer's job. On June 5, the developer sent the contractor a signed confirmation letter wherein he stated, "I hereby accept your offer to build the 10 tract homes for $500,000. ', Thereafter, the contractor hired another plumber to complete the plumbing work at a cost of $60,000. The contractor then explained the situation to the developer and requested that the overall cost of the job be increased to $510,000. The developer refused on the grounds that he had a contract for $500,000 and that this was the contractor's problem. The contractor then built the 10 tract homes, and the developer sent him a check for $500,000. Which of the following best supports a claim for $10,000 by the contractor against the plumber who refused to do the work?
choices
- The plumber made an offer that the contractor accepted by using the plumber's bid in computing the bid he submitted to the developer.
- The plumber's bid was a "firm offer" that was not revocable, since both the plumber and the contractor were merchants.
- The contractor made an offer to the plumber that the plumber accepted when he submitted his bid.
- An option contract was created, because the contractor, with the plumber's knowledge, used the plumber's bid in computing the bid he submitted to the developer.
subject
professional_law
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