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 $3,500 rather than $35,000.ACE Corp.accepted Jeff's bid,mostly because all the other bids were over $30,000.When Jeff learns of the mistake,he tells ACE Corp.that he cannot do the job for $3,500.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B)This is a bilateral mistake,so the contract can be rescinded by either party.
C)This is a unilateral mistake,so the contract cannot be rescinded by Jeff.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 on Jeff's part, but ACE Corp. knew or should have known that a mistake had been made. In such cases, the mistaken party can rescind the contract. ACE Corp. will likely not be able to enforce the contract and would need to look for another contractor.

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