Ray, an employee of Shipping Company, makes a substantial mathematical mistake in totaling estimated transportation costs for Tonnage Inc., which is seeking bids. Consequently, Shipping's bid is substantially low. Any contract with Tonnage that includes the mistake may be rescinded
A)if the mistake was made inadvertently and without gross negligence.
B)if the mistake was intentional.
C)if the mistake was unilateral.
D)under no circumstances.

Question

Quizplus · Accepted Answer

A unilateral mistake that is made inadvertently and without gross negligence can be grounds for rescission of a contract if the mistake is substantial and the other party has not relied to their detriment on the mistake.

Ray, an Employee of Shipping Company, Makes a Substantial Mathematical