Builders Corporation (Builders) is a general contractor. Builders wished to bid on a construction project and solicited bids from a variety of subcontractors. Four electrical subcontractors, Alpha, Beta, Gamma, and Delta, submitted bids to Builders. The bids were as follows: Alpha- $75,000; Beta- $85,000; Gamma- $90,000; Delta- $95,000. As Builders was preparing its bid on the construction project based upon the low bid submitted by Alpha, Builders’ president called Alpha and told him, "We won’t be able to do it with your present bid, but if you can shave off $5,000, I’m sure that the numbers will be there for us to get that project." Alpha responded, "No way! In fact, that bid we submitted was based on a $15,000 error; we can’t do it for a cent less than $90,000." Nevertheless, Builders submitted its bid for the construction project using Alpha’s original $75,000 bid. Builders was not awarded the construction job and subsequently sued Alpha. Alpha is liable for:________.

Builders requested Alpha to make a discount (which is considered a counteroffer) but Alpha rejected it. At this point there was no valid offer anymore, and luckily for Builders, they lost the bid. Since a counteroffer invalidates an original offer, Alpha didn't have any type of obligation with Builders to perform at $75,000. The new price between them was $90,000, take it or leave it. Builder's president made a mistake when he made his counteroffer and if they had won the contract, then they would have needed to look at the other offers.

Cricetus Cricetus · Answer 2 · 2021-12-16T16:44:08+01:00

Alpha is liable for nothing. A further explanation is below.

Builders asked Alpha for a discount, however, Alpha declined. At this moment, there's no longer a legitimate offer, as well as fortunately for Builders, they dropped the bid.

Because a counteroffer nullifies an earlier commitment, Alpha was under no duty to Contractors to execute at $75,000. They agreed on new pricing of $90,000, accept or reject it.
This same president make mistake when before he submitted his counteroffer because if they will indeed have just been awarded the contract, they would've had to examine the other proposals.

Thus the statement above is correct.

Learn more about the contract here:

https://brainly.com/question/20350854