A mistake made by both parties concerning a material fact that is important to the subject matter of a contract is a mutual mistake of a material fact.

Question

Quizplus · Accepted Answer

This statement is true. A mutual mistake of a material fact occurs when both parties are mistaken about a crucial fact that is important to the subject matter of the contract. This type of mistake could render the contract voidable, meaning it can be canceled by either party or void, meaning it is invalid from the beginning.

A Mistake Made by Both Parties Concerning a Material Fact