contract 87.2 v. 90

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contract 87.2 v. 90

Postby HyeMart » Sat Nov 26, 2011 9:07 pm

87.2 creates an option contract
and 90 is PS,
but what's the real difference here? I'm having trouble seeing why someone would use or over the other?


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Joined: Sat Nov 06, 2010 7:55 pm

Re: contract 87.2 v. 90

Postby Anomaly » Sat Nov 26, 2011 9:55 pm

S. 87 is the idea that reliance on an offer can make the offer irrevocable. The offeree has the option to accept. This comes up in the general/subcontractor context. Did you read Pavel/Drennan/Baird? The typical scenario is that the subcontractor submits a bid to the general contractor who uses the bid (re: relies on the bid) to calculate his bid which he submits to the principal. Make sense so far? Next, the sub revokes the bid. And then the general wins the contract. So the general says to the sub "you can't revoke because I relied on your bid and now I'm stuck." The general points the court to s.87 and Traynor's opinion in Drennan or its progeny. The general also argues that the sub should bear the risk because the sub screwed up.

S. 90 is the idea that reliance on the promise can make the promise enforceable. Totally arbitrary and depends on context. But you already know this stuff because your contracts final is just around the corner.

Disclaimer: Don't rely on this for your exam.

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