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• B)This is a bilateral mistake, so the contract can be rescinded by either party.
• C)This is a unilateral mistake, so the contract cannot be rescinded by Jeff.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

P-Value

The odds of encountering test findings at least as extreme as the observed ones, given that the null hypothesis is accurate.

Hypothesis Testing

A statistical method that uses sample data to evaluate a hypothesis about a population parameter, leading to a decision to accept or reject the hypothesis.

Test Statistic

A numerical value calculated from a sample of data used in statistical testing to determine whether to reject the null hypothesis.

T-Distribution

A probability distribution used in statistics, especially in scenarios with small sample sizes, that is symmetric, bell-shaped, and slightly thicker and longer-tailed than the normal distribution.