WHEN MISTAKE IN BID WAS DUE SOLELY TO MISUNDERSTANDING BETWEEN BIDDER AND ITS SUPPLIER. VALID CONTRACT IS CREATED BY ACCEPTANCE. CONTRACT MAY NOT BE RESCINDED AS UNCONSCIONABLE SINCE MISTAKE WAS NOT SO GREAT THAT GOVERNMENT OBVIOUSLY IS GETTING SOMETHING FOR NOTHING. TERMINATION FOR CONVENIENCE IS NOT RECOMMENDED SINCE THAT PROVISION IS DESIGNED PRIMARILY FOR GOVERNMENT'S BENEFIT AND NOT AS MEANS...

The Department of the Interior requested a decision as to whether a contract with North Pacific Lumber Company may be terminated for convenience because of an error in price resulting from a misunderstanding. The contract may not be rescinded as acceptance of the bid made the contract valid, and it cannot be considered unconscionable...