First Baptist Church of Moultrie v. Barber Contracting Co. – Case Brief Summary
Summary of First Baptist Church of Moultrie v. Barber Contracting Co., 189 Ga.App. 804, 377 S.E.2d 717 (1989).
Facts
Barber Contracting (D) submitted a bid to First Baptist Church of Moultrie (P) for the construction of a music, education, and recreation building. The bidding instructions specified that negligence on the part of the bidder in preparing the bid conferred no right to withdraw after the bid was opened.
After the bid opening, Barber discovered that it had made a $143,120 clerical error in totaling the material costs and notified First Baptist that it was withdrawing its bid. More than one week later the church forwarded a construction contract and Barber refused to sign. First Baptist refused to accept the withdrawal and hired the next lowest bidder. The plaintiff demanded that Barber pay it $93,000 pursuant to the bid bond and Barber refused.
First Baptist brought this lawsuit for breach of contract and both parties moved for summary judgment. The trial court denied both motions and Barber was granted interlocutory review.
Issue
Is rescission of a contract permitted where there has been a mistake of material fact by only one party?
Holding and Rule
Yes. Rescission of a contract is permitted where there has been a mistake of fact by only one party. The mistake must be an unintentional act, omission, or error arising from ignorance, surprise, imposition, or misplaced confidence. Relief will be granted even in cases of negligence if the opposing party will not be prejudiced.
The court held that under these facts, Barber promptly notified First Baptist of the mistake in calculations. The mistake was a clerical error and did not amount to negligence preventing equitable relief. It was material to the contract and went to the substance of the consideration. To allow First Baptist to take advantage of this mistake would not be just.
First Baptist contended that Barber’s acts constituted negligence sufficient to prevent relief in equity. The court held that even if that were true, First Baptist was not prejudiced by Barber’s rescission. The trial court improperly denied Barber’s motion for summary judgment.
Disposition
Reversed and remanded.
See Stambovsky v. Ackley for a contract law case brief in which the court granted rescission of a contract for the sale of the house because the seller did not disclose to the buyer that it was haunted.