CORe Exam Dumps | JKL, Inc. solicits bids for the repair of a boiler used in its shoe factory. Supplier A submits a bid

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Question 72/72

JKL, Inc. solicits bids for the repair of a boiler used in its shoe factory. Supplier A submits a bid of $7000. The next lowest bid is $8,000, and the remaining bids are between $10,000 and $11,000. JKL awards the contract to Supplier A. However, before beginning repairs, Supplier A realizes it made a mistake and underestimated the repair work. Supplier A refuses to do the work, saying it would lose money. If JKL declines to increase the payment and claims that Supplier A breached the contract, the MOST likely result would be which of the following?

A. Supplier A will have breached the contract, but only if JKL did not know or have reason to know that Supplier A's low bid was the result of an error.

B. Supplier A will not have breached the contract, because Supplier A can successfully argue that the contract is voidable.

C. Supplier A will not have breached the contract because the frustration of purpose doctrine excuses Supplier A's non-performance.

D. Supplier A will have breached the contract, but only if it is too late for JKL to accept the bid of the second lowest bidder.

Question 72/72

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