Builders Inc., an experienced contractor, requested a bid from a supplier for lumber needed to complete a project. When responding to the bid, the supplier made a clerical error, and offered $30,000 worth of lumber for $3,000. Builders sent an e-mail accepting the offer. If this situation turns into a legal dispute, A) the Court will find there is no valid contract because the $3,000 is not sufficient consideration for $30,000 worth of lumber. This is a mutual unilateral mistake.

B) the Court is likely to find that this is a mutual mistake; both parties are wrong. The Court will order the parties to negotiate a fair deal.

C) the Court will enforce the agreement. The supplier should have been more careful in responding to the bid. This is a bilateral mistake.

D) the Court is likely to find that this is a unilateral mistake. However, since Builders knew (or should have known) that there was a mistake, the supplier will not be held to the $3,000 quote.

Question

Business

Shayna Moreno

8 July, 01:07

Builders Inc., an experienced contractor, requested a bid from a supplier for lumber needed to complete a project. When responding to the bid, the supplier made a clerical error, and offered $30,000 worth of lumber for $3,000. Builders sent an e-mail accepting the offer. If this situation turns into a legal dispute, A) the Court will find there is no valid contract because the $3,000 is not sufficient consideration for $30,000 worth of lumber. This is a mutual unilateral mistake.

B) the Court is likely to find that this is a mutual mistake; both parties are wrong. The Court will order the parties to negotiate a fair deal.

C) the Court will enforce the agreement. The supplier should have been more careful in responding to the bid. This is a bilateral mistake.

D) the Court is likely to find that this is a unilateral mistake. However, since Builders knew (or should have known) that there was a mistake, the supplier will not be held to the $3,000 quote.

+3

Answers (1)

Know the Answer?

Andreas Martinez · Answer 1

If the given situation turns into a legal dispute: Option D: the Court is likely to find that this is a unilateral mistake. However, since Builders knew (or should have known) that there was a mistake, the supplier will not be held to the $3,000 quote.

Explanation:

Builders requested a bid from the supplier and while answering the bid, supplier made an error.

Unilateral mistake is the one in which only one party commits a mistake. The party that doesn't make the mistake gets to know about the mistake done by the other party. The contract is then made voidable by the mistaken party.

A voidable contract is like a formal agreement which is made between the two parties in which contract is decided to be made not enforced in case of any legal reason. It may include, if any of the party is not able to disclose a fact or a mistake, misrepresentation or any undue influence by someone on any of the parties. Thus, in the given case, court will, likely find this as unilateral fault.