Fact Pattern 15-2
Lewis, an employee of Silos, Inc., makes a substantial mathematical error in totaling the estimated costs for a project for which AgriCo-op is seeking bids. Consequently, Silos's bid is significantly low.
-Refer to Fact Pattern 15-2. Any contract with AgriCo-op that includes the mistake may be rescinded
A) if the mistake involves a material fact.
B) if the mistake involves any fact.
C) if the mistake is one of value or quality.
D) under no circumstances.

Question

Fact Pattern 15-2
Lewis, an employee of Silos, Inc., makes a substantial mathematical error in totaling the estimated costs for a project for which AgriCo-op is seeking bids. Consequently, Silos's bid is significantly low.
-Refer to Fact Pattern 15-2. Any contract with AgriCo-op that includes the mistake may be rescinded
A) ​if the mistake involves a material fact.
B) ​if the mistake involves any fact.
C) ​if the mistake is one of value or quality.
D) ​under no circumstances.

Quizplus · Accepted Answer

The contract may be rescinded if the mistake involves a material fact, which in this case would be the estimated costs for the project. A mistake involving any fact or one of value or quality would not necessarily be sufficient for rescission. Under no circumstances is not a valid option in this scenario as the contract may be rescinded under specific conditions.

Fact Pattern 15-2 Lewis, an Employee of Silos, Inc., Makes a Substantial Mathematical