AtlasNow Construction Company, a general contractor, plans to place a bid for building a hospital. It requests bids from subcontractors for plumbing and other construction related services that will be needed for building the hospital. 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. Which of the following conditions is required for the two companies to enter into a legally enforceable contract?

Question

Quizplus · Accepted Answer

For a contract to be legally enforceable, there must be a bargained-for exchange. In this case, AtlasNow is requesting bids for subcontracting services and Catapipes is submitting a bid for plumbing work. This constitutes a bargained-for exchange between the two parties. A and B are incorrect because the considerations do not have to be both beneficial or detrimental to both parties. C is also incorrect because not all contracts need to be in writing.

AtlasNow Construction Company, a General Contractor, Plans to Place a Bid