Reference no: EM133654768

Question

A city solicited bids for the repair of a crawler tractor used at its city landfill. A mechanic submitted the low bid of $8,500. The city awarded the contract to the mechanic. However, before commencing the actual repairs, the mechanic realized that he had made a mistake and underestimated the repair work. As a result, if the mechanic completes the job, he will lose money on the contract. The mechanic refused to do the work unless the city agreed to pay him $9,000. The City was anxious that the work not be delayed and told the mechanic: "All right. We will pay you $9,000 if you go ahead and perform, even though we think you ought to stick by your bid." The mechanic then went ahead and repaired the crawler tractor. Thereafter, the city paid the mechanic $8,500, saying it had changed its mind about paying the additional amount. The mechanic sued the city for $500, and the city defended on the basis that there was no consideration for its promise to pay the additional amount. In most jurisdictions, who will prevail? a) The mechanic, because the parties mutually rescinded the original contract at the $8,500 price.