What is the name of the law principle that allows the Contractor to incorporate a price quotation into their bid proposal?

The principle that allows a contractor to incorporate a price quotation into their bid proposal is best understood through the context of promissory estoppel. This legal doctrine can be applied when a promise is made, and one party relies on that promise to their detriment. In the context of bidding, when a contractor provides a price quotation, it can create an expectation that the quoted price will be honored. If another party relies on that quotation in making decisions or commitments, promissory estoppel can enforce the contractor's obligation to uphold the quoted price even if a formal contract has yet to be finalized.

In contrast to the other options, contractual obligation pertains more generally to the duties outlined within a signed contract rather than the process of quoting a price. An implied contract refers to an agreement inferred from actions rather than explicit terms, which is not directly connected to the incorporation of a price quote into a bid. A negotiated agreement involves direct discussions and terms settled mutually between parties, differing from the unilateral aspect of merely submitting a price quote without further negotiation.

Therefore, understanding these distinctions highlights how promissory estoppel specifically applies to the scenario of incorporating a price quote in a bid proposal.