Cengage Advantage Books: Law for Business 18th Edition by John Ashcroft ,Janet Ashcroft

Exercise 11

The town of Lunenburg asked for bids on a multimillion-dollar construction project to be financed by the state. State law requited the town to publish a notice for bids in a newspaper of general circulation in the locality. Lunenburg failed to advertise for bids in a local newspaper. Baltazar Contractors Inc. was the low bidder, and Lunenburg signed a contract with the company. The state Department of Environmental Protection questioned the bid award and told Lunenburg its state financing was in jeopardy. Lunenburg told Baltazar it was ending the contract. It re-advertised for bids, this time publishing a notice in the local newspaper. Baltazar bid again, but MDR Construction Co. Inc., who had not bid the first time, was the low bidder and got the contract. Baltazar sued Lunenburg for damages. Should Baltazar recover?