A party may rescind a contract if there has been a ________ mistake of a past or existing ________ fact.
A) unilateral; demonstrable
B) unilateral; material
C) mutual; demonstrable
D) mutual; material
E) multilateral; demonstrable

Question

Quizplus · Accepted Answer

A party may rescind a contract if there has been a mutual mistake of a past or existing material fact. A material fact is a fact that would likely have caused a reasonable person to act differently if they had known about it. The mistake must be mutual, meaning both parties were mistaken about the fact, and not just one party.

A Party May Rescind a Contract If There Has Been