Bacall, a Building Contractor, Bid for and Won the Tender

question 41

Multiple Choice

Bacall, a building contractor, bid for and won the tender to construct Klegman's Shopping Centre. Due to rampant, unexpected inflation, she found she would not quite break even on the project and she asked Klegman to renegotiate the price. Klegman pointed out that there was no provision in the contract for that and said, "A deal's a deal."

• A) Bacall can assert that this is a frustrated contract, and, since no work has been started, claim back the bid deposit of $50 000 and walk away from the whole thing.
• B) Bacall is stuck with the contract and there is nothing she can do but take the loss.
• C) Bacall can say that there has been a material alteration of the terms of the contract, and that this has discharged the contract's terms regarding payment, so she can renegotiate them without losing the contract.
• D) Because Klegman will be unjustly enriched if the contract is not renegotiated, Bacall can insist on a substitute agreement, which will discharge the old one.
• E) Any of the responses can be true.

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Definitions:

Macro Level

Analysis or perspective focusing on large-scale social structures and processes.

Groupthink

A psychological phenomenon occurring within a group of people, where the desire for harmony or conformity results in an irrational or dysfunctional decision-making outcome.

Primary Groups

are small, close-knit, and usually long-term social groups where members share direct, personal, and significant relationships, providing emotional and social support to each other.

Intimate Relations

Personal and deeply connected relationships between individuals, often characterized by affection, love, trust, and understanding.