Question
C-Corp, a construction company building a high-rise office building, invites bids from eight plumbing companies in relation to the plumbing for which the project calls.
C-Corp, a construction company building a high-rise office building, invites bids from eight plumbing companies in relation to the plumbing for which the project calls. Seven plumbing companies respond with bids that range from $15 million to $16 million. The eighth company, PlumbCo, bids $15.6 million. But in calculating that bid it omits, by simple oversight, to account for a $150,000 expense it would have to bear in completing the project. If it had not made the error, therefore, its bid would have been $15,600,000 + $150,000 = $15,750,000 = $15.75 million, instead of $15.6 million.
C-Corp receives Plumbcos $15.6 million bid and immediately accepts it. It does so even though other of the bids it receives are lower, because C-Corps president has faith in PlumbCo. After C-Corp issues its acceptance, PlumbCo discover its $150,000 error and seeks to void the contract. In all likelihood, PlumbCo
Group of answer choices
can void the contract because C-Corp had good reason to believe that PlumbCo had made a simple error in addition
cannot void the contract because, under the circumstances, C-Corp had no reason to believe that PlumbCo had made the error in addition
cannot void the contract because such would subject C-Corp to a possible loss of profit
can void the contract because C-Corp received seven additional bids, any one of which it can accept or could have accepted
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