Making a bid on a new construction project can be an important time for your company. After all, getting projects is how you and your company make money. If you do land the job, you will likely have to agree to certain contract terms, and you will want to set forth some yourself. Unfortunately, the chance exists that mistakes could exist in a contract.
Even if you feel like you have done a thorough job of reviewing the contract, an error could still rear its ugly head later. If this does happen, you could face the risk of losing out on payment or facing other costly issues, or the other party could claim that you breached the contract, which can also cause serious problems.
What kind of mistake could occur?
Though contract mistakes are best avoided, they do happen. In some cases, it means that companies have to go to court in order to have the matter resolved. If so, the type of mistake that has occurred could affect the case, and those types include the following:
- Mutual mistake: You or the other party could claim that both parties involved made an error, thus rendering the contract invalid. For example, both parties may have signed the agreement believing in the soundness of the construction site, but your company may have later found issues with the site that affected your ability to move forward with the project.
- Unilateral mistake: This type of mistake occurs when only one party is mistaken about an element of the contract or project. However, grounds may exist to void the contract if the other party knew of the mistake of fact and did not correct the mistaken party.
In some cases, a mistake in a contractual agreement has remedies that can quickly resolve the issue. On the other hand, the situation could become more complex, and it may prove necessary to argue for the voiding of the contract altogether.
What can you do?
If you find yourself involved in a contractual agreement for a construction project and a mutual or unilateral error has occurred, you would be wise to protect your interests. To do so, you may want to contact an experienced Florida attorney who could assess your situation to determine how the error may have occurred and who could hold responsibility. Your legal counsel could also help you determine your best course of action for correcting the problem.