In Hinson v. N&W Construction, where Hinson submitted the low bid to N&W for plumbing work to be part of a larger construction project by N&W, but then refused to do the work when construction was started by N&W, the court held that Hinson's bid:
A) could not be relied upon by N&W because he was not licensed for such work
B) was unrealistically low, which N&W recognized, so it could not rely on the bid
C) was valid, so there was a breach of contract; Hinson was liable for the full value of the contract
D) created liability based on promissory estoppel, so he was liable for the extra costs incurred by N&W
E) created liability based on promissory estoppel, so he was liable for the full value of the contract

Question

Quizplus · Accepted Answer

The court held that Hinson's bid created liability based on promissory estoppel, making him liable for the extra costs incurred by N&W to find a replacement. This is because N&W reasonably relied on Hinson's bid in their planning and budgeting for the project.

In Hinson V