Carefully consider the arguments for each side and the likely outcome. Explain in proper essay or legal analysis style. what the major issues are in each case, what legal contract principles would be argued for each side, and what a judge would probably ultimately decide.

The marking scheme follows at the end of the document.

CONTRACTS QUESTIONS

1. The City of Calgary advertised for tenders for a construction project. One of the terms of the advertisement was that once submitted the bid could not be revoked. Northern Construction submitted the low bid on the job. They then examined their bid and realized they had made an error in their calculations. They showed these documents to Calgary's representatives who agreed that they had made an error. Northern Construction then requested that they be released from their bid. Calgary, however, would not release them from the bid and then accepted it as the winning one. Northern Construction refused to honour the contract and Calgary was forced to go with the second lowest bid. They then sued. Explain the legal arguments available to both sides and the likely outcome of the action.

2. The infant plaintiff purchased a second-hand automobile from the defendant for $300 which, after being driven for 119 kilometers, broke down. Because the transmission needed replacing, which would have cost $200; the plaintiff simply towed the car to the home of the defendant, returned the keys and repudiated the contract. The infant then brought an action to recover the purchase price. Explain the probable outcome. Would your answer be any different if the car had not broken down but the plaintiff had simply decided against buying the car?