Where mutual mistake is pleaded, the courts apply an objective standard of the reasonable person.

Question

Quizplus · Accepted Answer

In cases of mutual mistake, the courts apply an objective standard based on what a reasonable person in the same circumstances would have believed or understood, rather than relying on the actual beliefs or intentions of the parties involved. This is because mutual mistake is a type of contract defense that arises when both parties have made the same error or assumption, rather than a situation where one party has intentionally misled or deceived the other.

Where Mutual Mistake Is Pleaded, the Courts Apply an Objective