Final answer:
A clerical error in a contract, such as reducing the price from $25,000 to $2,500, can lead to legal actions like rescission or reformation of the contract to correct the price to reflect the actual agreement. The contractor may be able to rescind the contract or seek reformation if there's evidence that both parties agreed on the original price and the mistake was not a result of gross negligence.
Step-by-step explanation:
In the scenario where Huseyin and Ashish have agreed on the construction of a garage with the specified terms, but a mistake in the contract significantly reduces the agreed price, this constitutes a clerical error or unilateral mistake. Ashish, noticing the erroneous price of $2,500 instead of $25,000, may seek to rescind the contract on the grounds of this mistake. Legally, courts often allow rescission if the mistake is material to the contract and was not caused by gross negligence. The actual agreement was for $25,000, and if evidence shows that both parties agreed to this figure before the error was made in writing, a court may correct the mistake to reflect the true intention of the parties. The consequences could include reformation of the contract with the correct price or possible rescission if the mistake is so severe that it defeats the purpose of the agreement. However, if this error is not noticed and the contract is executed at the mistaken price, the contractor may end up legally bound to complete the work for the significantly lower fee unless he can show that Huseyin knew of the mistake and took unfair advantage of it.