Local Investment Company and Midstate Properties, Inc., contract for the sale of a retail mall. A mutual mistake of fact will make it possible for ei?ther party to rescind the contract
A) if the mistake of fact is immaterial.
B) if the mistake of fact is material.
C) under any circumstances.
D) under no circumstances.

Question

Quizplus · Accepted Answer

A mutual mistake of fact that is material – meaning it goes to the heart of the contract and affects its value or performance – allows either party to rescind the contract. If the mistake is immaterial, it would not be grounds for rescission.