Company A submits a bid for a project by Company B. After doing so, Company A realizes that a mistake has been made in the calculations and that fulfilling the conditions will bring about bankruptcy. Nonetheless, they cannot withdraw their bid and win the contract. Even though Company A is still legally bound to perform, is there any way out of the contract, taking into account the harm that it will bring to employees and subcontractors which will invariably not be paid in full?
2007-03-29 09:04:42 · 2 answers · asked by Anonymous in Politics & Government ➔ Law & Ethics
In general a bid can be withdrawn at any time until it is accepted. If the bidding is closed & has been accepted, while technically A can be held to the bid by B, no rational contractor will hold a sub to a contract that they know they cannot perform as a breach or substandard performance will be inevitable & they'll be left with making up the difference out of their own pocket. Typically, where a mistake such as this is made, they'll either award it to the second low bidder or re-bid the contract.
2007-03-29 09:57:44 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Any company can submit a bid, then not elect to stay in the bidding process. A company would only be legally bound if they won the contract with erroneous information, then signed the contract to do the work.
Even then a company could get out of the contract since no work has been done and the customer has made no payments.
2007-03-29 16:16:36 · answer #2 · answered by regerugged 7 · 0⤊ 0⤋