Morton Reeves,a Building Subcontractor,submitted a Bid for Construction of a Portion

question 19

Multiple Choice

Morton Reeves,a building subcontractor,submitted a bid for construction of a portion of a high-rise office building.The bid contained material errors in computation.Lago Corp. ,the general contractor,accepted the bid with the knowledge of Reeves' errors.Reeves:

• A)must perform the contract unless he can show that Lago acted fraudulently.
• B)must perform the contract according to the stated terms since his errors were unilateral.
• C)can avoid liability on the contract only if his errors were not due to his negligence.
• D)can avoid liability on the contract since Lago knew of his errors.

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Definitions:

Environmental Uncertainty

Refers to the degree of unpredictability and complexity in an organization’s external environment, affecting its decision-making processes.

Complexity

The state of being intricate or complicated.

Rate of Change

The speed at which a variable or condition undergoes alteration over a specific period, often used in contexts ranging from technology to environmental conditions.

Innovation

The act of converting a concept or innovation into a product or service that adds value or is something consumers are willing to purchase.