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B)This is a bilateral mistake, so the contract can be rescinded by either party.
C)This is a unilateral mistake, so the contract cannot be rescinded by Jeff.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.
D
You might also like to view...
Debenture bonds are backed by specific assets of the corporation
a. True b. False Indicate whether the statement is true or false
The static budget can be adjusted automatically for changes in the level of output
Indicate whether the statement is true or false
A capital lease is accounted for as if the asset has been purchased
Indicate whether the statement is true or false
Answer the following statement true (T) or false (F)
The distinction between losses and expenses is important under the all-inclusive income concept.