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Subcontractor submits a bid to the general contractor (GC) for the excavation and foundation work for a new office building for a price of $100,000.

Subcontractor submits a bid to the general contractor (GC) for the excavation and foundation work for a new office building for a price of $100,000. During the construction Subcontractor encounters major bedrock problems that require specialized equipment and increased time, both of which together escalated the cost of the work by $35,000. Which of the following statements is most likely to be correct?

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If Subcontractor is able to establish the elements of unilateral mistake, it could recover the increased cost of construction from GC.

Subcontractor does not bear the risk of mistake because it did not discover the bedrock problems until after it entered into the contract.

If Subcontractor wishes to avoid the contract on the grounds of unilateral mistake, it will need to establish that GC either caused the mistake, knew of the mistake, or that the increased cost would be unconscionable.

Subcontractor cannot avoid the contract because the mistake was not a palpable one.

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