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Contracts Keyed to Knapp
Wil-Fred’s, Inc. v. Metropolitan Sanitary District
Facts
The Plaintiff, Wil-Fred’s, Inc. (Plaintiff), submitted a bid and a $100,000 security deposit in response to the Defendant, Metropolitan Sanitary District’s (Defendant), advertisement seeking contractors for the rehabilitation of sand drying beds at its plant. The estimated cost of the work, as stated in the advertisement was $1,257,000.00. Plaintiff submitted the low bid of $882,600. Plaintiff’s bid included the bid of a subcontractor with whom Plaintiff had worked several times and whose work Plaintiff found to be performed skillfully. The proposal form that Defendant sent to Plaintiff contained a clause stating that the proposal was not be withdrawn or cancelled or the Defendant will retain the security deposit. Plaintiff then learned that its subcontractor made an error in submitting its bid to Plaintiff and that performing the contract at that price would force the subcontractor into bankruptcy. With this information, Plaintiff attempted to withdraw its bid. Defendant reje cted Plaintiff’s withdrawal. Plaintiff then filed for a preliminary injunction and rescission of the contract.
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