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 14-2. Any contract with AgriCo-op that includes the mistake may be rescinded

Question

Quizplus · Accepted Answer

If AgriCo-op knew or should have known of the mistake, then they cannot take advantage of the mistake to enforce the contract. This is a defense to the enforcement of a contract based on mistake, known as unilateral mistake. Therefore, any contract with AgriCo-op that includes the mistake may be rescinded if AgriCo-op knew or should have known of the mistake. However, if Silos knew or should have known of the mistake, it would not be a defense as it is Silos' responsibility to ensure the accuracy of their bid. The knowledge of Lewis's supervisor is not relevant in determining whether the mistake can be rescinded.

Lewis,an Employee of Silos,Inc