A contractor's bid submitted to an owner is best characterized in contract terms as:
Explanation
A bid is an offer to do the described work at the stated price; a contract forms only on acceptance. Until then the owner may reject it, it lapses after the time stated or a reasonable time, and it is generally revocable — though on public works a bid bond and Public Contract Code §5100 et seq. sharply limit withdrawal, and a general contractor's reasonable reliance on a subcontractor's bid can make that bid irrevocable under Drennan v. Star Paving (1958) 51 Cal.2d 409. (a) collapses offer into acceptance; opening a bid is not accepting it. (b) confuses a price proposal with a warranty — a fixed price allocates cost risk but warrants nothing about scope. (c) confuses the bid with the bid bond, which is the instrument that actually puts money behind a withdrawal.
Law Reference: Civil Code §1582; Pub. Contract Code §5100 et seq.; Drennan v. Star Paving (1958) 51 Cal.2d 409This topic, taught in full in the CSLB Law & Business guide. CSLB Law & Business — Complete Study Guide (2026) — PDF + EPUB, $24.99 · 14-day refund →
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