Business Law 5th Edition by David Twomey ,Marianne Jennings ,Stephanie Greene

Exercise 14

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. Not liable, because the contractor knew of the errors
b. Not liable, because the errors were a result of gross negligence
c. Liable, because the errors were unilateral
d. Liable, because the errors were material (5/95, Law, #17, 5351)