WHITE V. BERENDA MESA WATER DIST.
7 Cal.App3d 894 (1970)
NATURE OF THE CASE: This was an action for a breach of contract. White (P), the low
bidder on a public construction contract and its surety, appealed a decision dismissing
their declaratory judgment suit for rescission of the contract and the return of a bond.
FACTS: Berenda Mesa Water District (D invited bids on a construction project. White (P)
was the low bidder ($427,890 vs. $494, 320). P's bid was based on unwarranted soil reports
and statements of an engineer. P's bid was submitted on the assumption that no more than 7%
of the soil to be excavated was hard rock. The hard rock actually composed 50% of the soil.
P filed a surety bond for 10% of his bid. P discovered that he made an error in his bid, and
before the acceptance of the bid, P informed D that he was withdrawing his bid. The mistake
was explained to D but they still accepted P's bid. P refused to perform and D kept the
performance bond and awarded the contract to the next lowest bidder. P sued to recover the
bond. At trial P alleged that he was guilty of simple negligence in failing to determine
that the reports were not accurate and that because of this factual mistake the contract
with D should be rescinded because D had suffered no damage. P appealed the judgment for D.
ISSUE:
RULE OF LAW:
HOLDING AND DECISION:
LEGAL ANALYSIS:
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