Drennan v. Star Paving Co. - price Rule Promissory...

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Drennan v. Star Paving Co. 51 Cal. 2d 409 ( 1958) Fact: Procedural Facts: Operative Facts: A general contractor took bids, and a subcontractor made a bid to the general contractor for a low price of around 7k. The next day, after the general contractor submitted his bid to the city, and it was award the bid, the subcontractor told the general contractor that there has been a mistake, and they couldn’t do it for less than 15k. The general contractor found a place to do it for 10k, and sued the subcontractor for 3k, because he relied on that bid. The subcontractor stated that there was no contract. Issue: Whether the general contractor can hold the subcontractor liable for the work with that
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Unformatted text preview: price. Rule: Promissory Estoppels holds that a promise made in good faith, and the other relies on that promise in good faith, then they are cannot revoke the offer for a reasonable amount of time. Rational: The subcontractor gave the bid. The general contractor relied on that bid, and gave it to the city. Since the general contractor relied on that bid, the subcontractor cannot revoke his offer, and would be held to his promise, since it was already being put to use. Holding: Subcontractor has to pay for the 3k difference. No contract, but the subcontractor is held under the promissory estoppels doctrine. Synthesis: Dissent/Concurrences:...
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This note was uploaded on 12/20/2011 for the course CONTRACTS 111 taught by Professor Dellinger during the Fall '11 term at Western State Colorado University .

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