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. If Catapipes Plumbing plans to withdraw its bid, what legal doctrine can help AtlasNow from being meted out injustice due to lack of consideration?

Question

Quizplus · Accepted Answer

The legal doctrine that can help AtlasNow from being meted out injustice due to the lack of consideration is promissory estoppel. If Catapipes Plumbing withdraws its bid, AtlasNow will suffer a loss because it relied on the estimate of Catapipes Plumbing in preparing its bid. Promissory estoppel provides relief to parties who have relied on the promise of another. In this case, AtlasNow would have relied on Catapipes Plumbing's bid and would suffer unjustly if the bid was withdrawn.

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