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 $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

Answer 1

Answer:

Even though the mistake was unilaterally made by Jeff, it was obvious for the company that a mistake had been made. All the other offers were over $30,000, so there is no reasonable way that Jeff's offer could be so low. Jeff's arguments would prevail in court.