Bar Exam (US) Contracts: Question below is based on the following fact situation. Kirby Construc...

Question

Question below is based on the following fact situation.

Kirby Construction Co., in preparing its bid for the construction of a new hospital, received a quote of $120,000 from Kat's Interior Inc to do the kitchen work in the new hospital. This bid was $30,000 lower than Kirby's next lowest bid for the kitchen work. As a result, Kirby used Kat's bid and lowered its bid by $20,000 before submitting it to the hospital board. After Kirby was awarded the construction bid, Kat's president discovered that in his preparation of the quote, he had overlooked some subsidiary kitchen installments required by the plans.

Assume that Kat's sent their bid of $120,000 by email to Kirby. However, the email incorrectly listed the bid as $20,000, making it $130,000 lower than the next lowest bid. Kirby, in turn, utilizes this figure in preparing its bid for the hospital construction. Kirby is awarded the contract, but Kat's refuses to perform. Kat's best defense in an action for breach of contract by Kirby would be:

AnswerChoose the correct answer.Choose all that apply. Correct Partially correct Incorrect Don't Know

  1. A
    Correct Answer
    that Kirby should have been aware of the mistake because of the disparity between Kat's bid and the next lowest one.
  2. B
    Correct Answer
    that the Internet service provider should be liable as an independent contractor for facilitating the mistaken transmission.
  3. C
    Correct Answer
    that Kirby was under an affirmative duty to investigate all submitted bids.
  4. D
    Correct Answer
    that the mistake made the contract unconscionable.
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