Question

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?

Answer 1

Answer:

ACE Corp. would lose.

Explanation:

Even though this would be considered a unilateral mistake from Jeff's side, the other party, ACE Corp., could easily realize that there was something wrong with it. It is not logical to believe that Jeff would be able to build something at only 10% of the cost than the rest of the competition.