May 17, 2014

Elsinore Union Elementary School District v. Kastorff | Case Brief Law Student - 353 P.2d 713 (1960)

FACTS:  Kastroff made a bid on a project for the Elsinore School District.  When putting the bid together he forgot to use one of the estimates for plumbing and his bid was low.  Thinking he was making the lowest bid the school district awarded him the contract.  A few days later Kastroff realized his mistake and attempted to get out of the contract.  He notified the school district immediately but the still held him to the contract.

HISTORY: Judgment for the plaintiff.

ISSUE: Is the offer good if there was an honest mistake?

HOLDING: No

RATIONALE: Relief from mistaken bids is consistently allowed where one party knows or has reason to know of the other's error and the requirements for rescission are fulfilled.  In Kepmer "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 the statu quo." (175)

Furthermore the evidence shows that Kastorff did not show neglect in putting together the bid and it was purely a clerical error.  the percentage of the error is also larger than that of Lemoge which was a similar case.

DISPOSITION: Judgment is reversed.