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ISM Supply Management Core Exam CORE Question # 70 Topic 8 Discussion

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ISM Supply Management Core Exam CORE Question # 70 Topic 8 Discussion

CORE Exam Topic 8 Question 70 Discussion:
Question #: 70
Topic #: 8

JKL, Inc. solicits bids for the repair of a boiler used in its shoe factory. Supplier A submits a bid of $7000. The next lowest bid is $8,000, and the remaining bids are between $10,000 and $11,000. JKL awards the contract to Supplier A. However, before beginning repairs, Supplier A realizes it made a mistake and underestimated the repair work. Supplier A refuses to do the work, saying it would lose money. If JKL declines to increase the payment and claims that Supplier A breached the contract, the MOST likely result would be which of the following?
A.

Supplier A will have breached the contract, but only if JKL did not know or have reason to know that Supplier A's low bid was the result of an error.

B.

Supplier A will not have breached the contract, because Supplier A can successfully argue that the contract is voidable.

C.

Supplier A will not have breached the contract because the frustration of purpose doctrine excuses Supplier A's non-performance.

D.

Supplier A will have breached the contract, but only if it is too late for JKL to accept the bid of the second lowest bidder.

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Actual exam question for ISM CORE exam by Echo17314 at Aug 3, 2025, 12:00:00 AM

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