If both parties to a contract misunderstand each other regarding an essential fact the contract is:

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Quizplus · Accepted Answer

When both parties to a contract misunderstand each other regarding an essential fact, the contract is void because of mutual mistake. This means that both parties were mistaken about the same thing and therefore, there was no meeting of the minds on an essential element of the contract. As a result, the contract is considered to be void from its inception.

If Both Parties to a Contract Misunderstand Each Other Regarding