Alex wants to submit a bid on a city sewer project.He computes the cost,but mistakenly omits the cost of one item.Accordingly,he submits a bid of $430,000 to the city.The next highest bid is $675,000,and the rest of the bids are even higher.The city is happy to have such a low bid,so it accepts Alex's bid and awards him the contract for the job,even though the city engineer is of the opinion the job cannot be done for less than $650,000.In this case:
A) Alex must perform for the agreed upon price because he has made a unilateral mistake.
B) the city was aware of or should have been aware of Alex's mistake.When it accepted the bid with knowledge of Alex's mistake,the city sought to take an unconscionable advantage of Alex's error.
C) the city must allow Alex to revise his bid to include the cost of the omitted item.
D) Alex will be paid the fair market price according to the UCC for his work.

Question

Quizplus · Accepted Answer

The city had knowledge or should have known of Alex's mistake and still accepted the bid, which could be seen as taking an unconscionable advantage of the error. Therefore, the contract may be voidable due to unilateral mistake. Alex may have grounds to renegotiate the contract or seek legal action. Option A is incorrect because Alex's mistake does not solely make him responsible for the agreed-upon price. Option C is also incorrect because the city is not obligated to allow Alex to revise his bid. Option D does not apply since the UCC does not cover construction contracts.

Alex Wants to Submit a Bid on a City Sewer