Jeff was a subcontractor,bidding on a contract for ACE Corp.,the general contractor.When adding up the total of materials and labor,Jeff's secretary mistakenly moved the decimal point one place,ending up with a bid of $3500 rather than $35,000.ACE Corp.accepted Jeff's bid,mostly because all the other bids were over $30,000.When Jeff learned of the mistake,he tells ACE Corp.that he cannot do the job for $3500.If ACE Corp.sues to enforce this contract,what is the most likely result?
A)The contract is enforceable, since there was an offer, acceptance, and consideration.
B)This is a bilateral mistake, so the contract can be rescinded by either party.
C)This is a unilateral mistake, so the contract cannot be rescinded by Jeff.
D)This is a unilateral mistake, but one where ACE Corp. knew that a mistake had been made. Jeff should be able to rescind the contract.

Question

Quizplus · Accepted Answer

This is a unilateral mistake, where Jeff made the mistake of offering a bid for $3500 instead of $35,000. However, ACE Corp. knew that this was a mistake, and still accepted the bid. Therefore, Jeff should be able to rescind the contract based on this unilateral mistake.

Jeff Was a Subcontractor,bidding on a Contract for ACE Corp