One situation in which a contract may not be enforced due to a unilateral mistake is when a party makes a unilateral mistake of fact and the other party either knew or should have known that a mistake was made.

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This is a correct statement as a unilateral mistake of fact can result in a contract being unenforceable if the other party knew or had reason to know of the mistake. This is based on the principle of fairness and preventing one party from taking advantage of another's mistake.

One Situation in Which a Contract May Not Be Enforced