This section contains the nature of the case and procedural background.

Elsinore Union Elementary School District (P) invited contractors to prepare bids for additions to the district's school buildings. Kastorff (D), a building contractor, prepared worksheets using bids from various subcontractors. The first sub-bid D received for plumbing was for $9,285. D thought that he wrote it down on the sheet, but he did not. When D got a lower bid of $6,500 for the plumbing work, he subtracted $3,000 from the total amount of his bid. D's total bid of $89,994 included no allowance for the plumbing work. D's bid was the lowest by $11,306. The school board inquired if the bid was correct. D affirmed that his bid was correct after he asked his clerical assistant, who assured him that it was. D was awarded the contract. D discovered the error the very next day. D rescinded the bid. P then awarded the contract to P. P returned it and again explained his error and asked for reconsideration. P refused to release D. The school board then took new bids and awarded the contract to the next lowest bidder ($102,900). P sued D for the difference between the two bids. P also sought a recovery of $4,499.60 against D's surety under the terms of the bond posted with his bid. The trial court awarded P the damages it sought. D appealed.

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