This assignment uses the IRAC method of analyzing a case. You will use this method to come to a decision involving the contract case below.

Drennan v. Star Paving Co.

On July 28, 1955, the plaintiff, a licensed general contractor, was preparing a bid on the "Monte Vista School Job" in the Lancaster school district. The plaintiff testified that it was customary in that area for general contractors to receive the bids of subcontractors by telephone on the day set for bidding and to rely on them in computing their own bids. The plaintiff's own bid had to include the names of subcontractors, and he also had to provide a bidder's bond of 10% of the total bid amount as a guarantee that he would enter the contract if awarded the work.

Kenneth R. Hoon, an estimator for the defendant, Star Paving Co., called the plaintiff, Drennen, and stated that he was bidding for the defendant for the paving work and that his bid was $7,131.60. The defendant's bid was the lowest bid for the paving work.

The plaintiff computed his own bid, added in the defendant's bid amount of $7,131.60, and submitted it with the name of the defendant as the subcontractor for the paving work. When the bids were opened on July 28th, the plaintiff's proved to be the lowest, and he was awarded the contract.

The next morning, the defendant's construction engineer, an employee, said that they had made a mistake in their bid the night before and they couldn't do it for the price they had bid, $7,131.60. The defendant refused to do it for the price they had bid and would not do the paving work for less than $15,000. After trying for several months to get as low a bid as possible, the plaintiff engaged L & H Paving Company to do the work instead for $10,948.60.

The trial court entered judgment for the plaintiff in the amount of $3,817 (the difference between the defendant's bid and the cost of the paving to the plaintiff) plus trial costs.

The defendant appealed on the ground that there was no enforceable contract between the parties since he made a revocable offer and revoked it before the plaintiff communicated an acceptance to the defendant. You are the judge set to rule in this appeals court. How do you rule?

3. Use the IRAC method to either affirm or reverse the decision made by the lower, trial court.

Issue (2 points): Explain the issue and finish the paragraph with a question. This is not a general question. Be as detailed as possible about the facts of the case.

Rule (2 points): Find the key term for a courts actions of disallowing a revocation of an offer. Define this term. Define any other terms here.

Analysis (2 points): Apply the rule to the issue. This section shall be a paragraph of at least four sentences.

Conclusion (2 points): Should the defendant be allowed to revoke the bid? Affirm or reverse the decision of the trial court.