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 Any contract with AgriCo-op that includes the mistake may be rescinded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 AgriCo-op knew or should have known of the mistake.
B) if Lewis's supervisor did not know of the mistake.
C) if Silos knew or should have known of the mistake.
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 Any contract with AgriCo-op that includes the mistake may be rescinded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 AgriCo-op knew or should have known of the mistake.
B) ​if Lewis's supervisor did not know of the mistake.
C) ​if Silos knew or should have known of the mistake.
D) ​under no circumstances.

Quizplus · Accepted Answer

AgriCo-op may rescind the contract if they knew or should have known of the mistake made by Lewis. This is because in such a case, there was no meeting of the minds between the parties, as both parties did not have the same understanding of the terms of the contract. However, if AgriCo-op did not know or could not have known of the mistake, they cannot rescind the contract, as they would have entered into the contract in good faith.

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