A building subcontractor submitted a bid for construction
of a portion of a high-rise office building. The bid contained
material computational errors. The general contractor accepted
the bid with knowledge of the errors. Which of the following
statements best represents the subcontractor’s liability?

(a) A mistake is an understanding that is not in agreement
with a fact. A unilateral mistake (made by one party) generally
does not allow the party to void the contract. However, a
mistake unknown to the party making it becomes voidable if the
other party recognizes it as a mistake. Particularly, this is the case
in bid contract computations. The contract is voidable by the
party making the mistake if the other party knew of the mistake
or if the calculation was far enough off that the other party should
have known that a mistake was made.