Question

Big Dig LLC makes an offer to perform an excavation and related tasks for Commercial Development Corporation, but due to a substantial mathematical mistake, significantly underprices the work. Commercial accepts the offer. Data Big’s best defense against enforcement of the contract is that Commercial knew


a.

a bilateral mistake supports the cancellation of a contract.


b.

the price was below the prices of comparable services.


c.

a mistake of value supports the cancellation of a contract.


d.

a unilateral mistake supports the cancellation of a contract.

Answer 1

Answer:C. A mistake of value support the cancellation of a contract.

Explanation:

The law of equity says ' he who comes to equity must come with a clean hand. Although the law requires the enforcement of a valid contract but the precensce of a substantial mathematics mistakes make the contract unenforceable.

It's not a bilateral mistake because it's from one the parties, though not all unilateral mistakes can cancel a contract especially when done with negligence.

The contract been below the price of contract of similar nature is not a valid excuse for non performance after agreement.