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

D issued a notice to contractors that bids would be received for the construction of a water distribution and storage system. The bids were to be accompanied by a check or bid bond in the amount of 5% of the total bid. P's bid was $812,753.00. This was $169,079.50 lower than the next lowest bid and $486,154.50 lower than the D's consulting engineer's estimate. All parties concerned suspected an error. P found the error and wished to withdraw the bid. No mention was made of the nature of the error. P made a mathematical error in transferring 6000 instead of 36,000 for one of the items needed for the contract. P sent a letter requesting withdrawal of the bid on the basis of gross error in cost estimating. P did not use the term 'mathematical error' in the letter because he did not know the type of error was important. D voted to accept the bid. P rejected the contract. P sued asking for rescission and cancellation of the bid bond. The court held that a unilateral mistake will not excuse nonperformance. P appealed.

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