Watts sued for breach of contract. Explain whether Watts will prevail.
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In May, Watts was awarded a construction contract, based on its low bid, by the Cullman County Commission. The contract provided that it would not become effective until approved by the State director of the Farmers Home Administration (now part of the U.S. Department of Agriculture Rural Development Office). In September, construction still had not been authorized, and Watts wrote to the County Commission requesting a 5 percent price increase to reflect seasonal and inflationary price increases. The County Commission countered with an offer of 3.5 percent. Watts then wrote the commission, insisting on a 5 percent increase and stating that if this was not agreeable, it was withdrawing its original bid. The commission obtained another company to perform the project and on October 14 informed Watts that it had accepted the withdrawal of the bid. Watts sued for breach of contract. Explain whether Watts will prevail. |
Explanation
Individual W cannot recover the damages for the contravention of the contract if the contract between Individual W and Individual C has been revoked. This case comes under mutual revocation. The contract may get cancelled with mutual agreement and without another consideration by the involved parties.
Verified Answer
Individual W is not going to triumph because of the discernment.
Individual W sending a letter removing their offer and the commission accepting that letter revokes any contract, which may have existed.
