You work for a respected general contractor and an owner in the private sector offers you a job that is a great fit for your company. $(6$ points total, $3$ points each$)$

a$.$ You verbally tell him your company will do the job. Is this considered a contract?

b$.$ You decide later that you actually do not have the manpower to properly staff the job. You have not yet signed a contract with the owner. Disregarding the legality of this scenario for a moment, why might it negativity affect your company to tell the owner you no longer want the job?