Which of the following is true?
A) Courts allow rescission of a contract if there is a mutual mistake of value as opposed to a mutual mistake of fact.
B) Courts allow rescission of a contract if there is a mutual mistake of fact as opposed to a mutual mistake of value.
C) Courts allow rescission of a contract for either a mutual mistake of fact or a mutual mistake of value.
D) Courts do not allow rescission of a contract for either a mutual mistake of fact or a mutual mistake of value.
E) Courts never allow rescission of a contract unless fraud is shown.

Question

Quizplus · Accepted Answer

Courts allow rescission of a contract if there is a mutual mistake of fact as opposed to a mutual mistake of value. Mutual mistake of fact means that both parties were mistaken about a material fact related to the contract. Mutual mistake of value means that both parties had different opinions about the value of the subject matter of the contract. Courts do not allow rescission for mutual mistake of value, but may allow rescission for mutual mistake of fact.

Which of the Following Is True