Elsinore Union Elementary School Dist. v. Kastorff case brief summary
54 Cal. 2d 380
SYNOPSIS: Defendant contractor and his surety appealed from a judgment of the Superior Court of Riverside County (California) awarding damages to plaintiff school district in an action to recover damages for defendant contractor's refusal to perform after his low bid was accepted.
OVERVIEW: Defendants, a building contractor and his surety, appealed from a judgment for plaintiff school district in an action to recover damages allegedly resulting from defendant contractor's failure to perform a contract after his low bid was accepted. Despite testimony of defendant contractor and the testimony of plaintiff's architect and superintendent that there was an honest clerical error in compiling the bid, the trial court held that it would not be inequitable or unjust to require performance of the contract. The court therefore awarded damages to plaintiff.
HOLDING:
The appellate court reversed the judgment, holding that it would be unconscionable to hold defendant contractor to his bid at the mistaken figure.
ANALYSIS:
Because of the clerical error and defendant contractor's subsequent prompt rescission, he was not obliged to perform the contract.
RULES:
-Rescission may be had for mistake of fact if the mistake is material to the contract and was not the result of neglect of a legal duty, if enforcement of the contract as made would be unconscionable, and if the other party can be placed in statu quo.
-In addition, the party seeking relief must give prompt notice of his election to rescind and must restore or offer to restore to the other party everything of value which he has received under the contract.
OUTCOME: The court reversed the judgment on the grounds that it would be unconscionable to hold defendant contractor to his bid at the mistaken figure.
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54 Cal. 2d 380
SYNOPSIS: Defendant contractor and his surety appealed from a judgment of the Superior Court of Riverside County (California) awarding damages to plaintiff school district in an action to recover damages for defendant contractor's refusal to perform after his low bid was accepted.
OVERVIEW: Defendants, a building contractor and his surety, appealed from a judgment for plaintiff school district in an action to recover damages allegedly resulting from defendant contractor's failure to perform a contract after his low bid was accepted. Despite testimony of defendant contractor and the testimony of plaintiff's architect and superintendent that there was an honest clerical error in compiling the bid, the trial court held that it would not be inequitable or unjust to require performance of the contract. The court therefore awarded damages to plaintiff.
HOLDING:
The appellate court reversed the judgment, holding that it would be unconscionable to hold defendant contractor to his bid at the mistaken figure.
ANALYSIS:
Because of the clerical error and defendant contractor's subsequent prompt rescission, he was not obliged to perform the contract.
RULES:
-Rescission may be had for mistake of fact if the mistake is material to the contract and was not the result of neglect of a legal duty, if enforcement of the contract as made would be unconscionable, and if the other party can be placed in statu quo.
-In addition, the party seeking relief must give prompt notice of his election to rescind and must restore or offer to restore to the other party everything of value which he has received under the contract.
OUTCOME: The court reversed the judgment on the grounds that it would be unconscionable to hold defendant contractor to his bid at the mistaken figure.
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Interested in learning how to get the top grades in your law school classes? Want to learn how to study smarter than your competition? Interested in transferring to a high ranked school?
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