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 Any contract with AgriCo-op that includes the mistake may be rescinded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

Quizplus · Accepted Answer

A mistake in totaling the estimated costs for a project that results in a significantly low bid would be considered a material fact. A material fact is a fact that is important enough to influence a reasonable person's decision in entering into a contract. As such, any contract with AgriCo-op that includes such a mistake may be rescinded if it involves a material fact. Therefore, choice A is the best answer.

Lewis,an Employee of Silos,Inc