Question: Agreement and Consideration
Shane Durbin wanted to have a recording studio custom built in his home. He sent invitations to a number of local contractors to submit bids on the project. Rory Amstel submitted the lowest bid, which was $20,000 less than any of the other bids Durbin received. Durbin then called Amstel to ascertain the type and quality of the materials that were included in the bid and to find out if he could substitute a superior brand of acoustic tiles for the same bid price. Amstel said he would have to check into the price difference. The parties also discussed a possible start date for construction. Two weeks later, Durbin changed his mind and decided not to go forward with his plan to build a recording studio. Amstel filed a suit against Durbin for breach of contract. Using the information presented in the chapter, answer the following questions.
1 Did Amstel's bid meet the requirements of an offer? Explain.
2 Was there an acceptance of the offer? Why or why not?
3 Suppose that the court determines that the parties did not reach an agreement. Further suppose that Amstel, in anticipation of building Durbin's studio, had purchased materials and refused other jobs so that he would have time in his schedule for Durbin's project. Under what theory discussed in the chapter might Amstel attempt to recover these costs?
4 Now suppose that Durbin had gone forward with his plan to build the studio and immediately accepted Amstel's bid without discussing the type or quality of materials. After Amstel began construction, Durbin asked Amstel to substitute a superior brand of acoustic tiles for the tiles that Amstel had intended to use at the time that he bid on the project. Amstel installed the tiles, then asked Durbin to pay the difference in price, but Durbin refused. Can Amstel sue to obtain the price differential from Durbin in this situation? Why or why not?