Question

Potter Excavating and Tremain Industries sign a contract with a $360,000 error. What is the status of the contract?

Option 1: Void due to the significant error.
Option 2: Enforceable with the correct amount.
Option 3: Voidable by either party.
Option 4: Unenforceable due to mutual mistake.

Answer 1

The status of the contract between Potter Excavating and Tremain Industries depends on whether the error is considered significant or a mutual mistake, and it could either be void or voidable by either party.

Step-by-step explanation:

The status of the contract between Potter Excavating and Tremain Industries would depend on the circumstances surrounding the error. Based on the options provided, there are two potential outcomes:

1. Option 1: Void due to the significant error: If the $360,000 error is considered a significant mistake that goes to the core of the contract, it may render the contract void. This means that the contract is considered invalid from the beginning, and neither party would be bound by its terms.
2. Option 3: Voidable by either party: Alternatively, if the error is more of a mutual mistake or a mistake made by both parties regarding the terms of the contract, it could be considered voidable. This means that either party could choose to enforce the contract or choose to void it based on the error.

It's important to note that contract law can be complex, and the specific circumstances and laws applicable in the jurisdiction would ultimately determine the status of the contract.