Orin, an employee of Plumbing LLC, makes a substantial mathematical mistake in totaling the estimated costs for a project for which Quality Built Inc. is seeking bids. Consequently, Plumbing's bid is significantly low. Any contract with Quality Built that includes the mistake may be rescinded
A)if Quality Built knew or should have known of the mistake.
B)if Orin's supervisor did not know of the mistake.
C)if Plumbing knew or should have known of the mistake.
D)under no circumstances.

Question

Quizplus · Accepted Answer

A contract may be rescinded if the other party (in this case, Quality Built Inc.) knew or should have known of the mistake. This principle protects parties from being unfairly bound by contracts that were entered into under mistaken assumptions that were or should have been apparent to the other party.

Orin, an Employee of Plumbing LLC, Makes a Substantial Mathematical