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:

Genetically Identical

Organisms or cells that have exactly the same DNA sequence in every respect, typically resulting from asexual reproduction or cloning.

Analog-to-Digital Converter

A device or system that converts an analog signal, such as a sound picked up by a microphone or light entering a digital camera, into a digital signal.

Telephony

The technology that enables voice communication over distances, traditionally through the transmission of sound via phone lines but now also encompassing internet-based services.

Digital Signal

A signal that represents data as a sequence of discrete values; opposed to an analog signal's continuous range.