AtlasNow Construction Company, a general contractor, requests bids from subcontractors for work to be done on a hospital building that AtlasNow plans to submit a bid to build.Catapipes Plumbing Company, a plumbing subcontractor, submits the lowest bid for the plumbing work, and AtlasNow incorporates Catapipes's low bid in its own bid for the general contract.Based on all of the subcontractors' bids, AtlasNow submits the lowest overall bid to build the hospital and is awarded the contract.
-Why does Catapipes's consideration have legal value?

Question

Quizplus · Accepted Answer

Catapipes's consideration, in the form of their low bid for the plumbing work, represents a bargained-for exchange between Catapipes and AtlasNow. This means that Catapipes submitted their bid with the expectation that if AtlasNow were awarded the contract, they would be hired to perform the plumbing work at the agreed-upon price. This exchange of promises constitutes legal value and forms a binding contract between AtlasNow and Catapipes.

AtlasNow Construction Company, a General Contractor, Requests Bids from Subcontractors