Question

Douglas County sought bids for a construction project. Robert Taggart wanted to submit a bid but knew the project needed rock. He talked with some owners of a rock source and was told the rock was for sale but the price could not be determined until the other owner was consulted. Taggart prepared an incomplete bid, told his bookkeeper to get the rock price and complete the bid. Taggart left on vacation. The bookkeeper did so and submitted the bid. The bids were opened. Taggart’s bid was the lowest, but it was learned later that day that the rock was longer for sale. The next day the bookkeeper delivered a written bid withdrawal to the county. The county subsequently awarded the contract to Taggart.
Required:
Is there a contract? If so, what aspect of contract law might apply here? If not, why?

Answer 1

Answer:

No, there is no contract between the two parties because of withdrawal of offer (Revocation) before the acceptance of the other party.

Explanation:

When one party offers another party and after some time the offer maker withdraws the offer by communicating that they had revoked then the offer is no more available to the other party and is often termed as Revocation. So when the offer maker revokes before the acceptance of the offer by the other party then their is no offer at consideration to the other party, which means if there is no offer then their can not be an acceptance of an offer and of course when there is no acceptance then there is no contract.

The communication of revocation was held before the acceptance of the offer of the other party which agains says that the contract was not actually formed.