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

question 29

Multiple Choice

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• B)This is a bilateral mistake, so the contract can be rescinded by either party.
• C)This is a unilateral mistake, so the contract cannot be rescinded by Jeff.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.

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Definitions:

Equitable Remedy

A judicial order enforcing a party to act or refrain from acting in a certain way, distinct from awarding damages.

Material And Willful

Refers to an action done intentionally and with a solid understanding of its consequences, often used in legal contexts to describe behavior.

Status Quo

The existing state of affairs or current condition, typically used in context with agreements or legal situations.

Quasi Contract

An obligation imposed by law to prevent unjust enrichment, even though no contract exists between the parties.