Asked by Samuella Agyemang on May 22, 2024

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Which of the following is a ground for avoidance of a contract based on a unilateral mistake?

A) Both parties are mistaken about a fact.
B) The nonmistaken party caused the mistake.
C) The mistaken party had reason to know of the mistake.
D) Person affected by the mistake does not bear the risk for it.

Unilateral Mistake

A situation in contract law where only one party is mistaken about a basic assumption on which a contract is made, which can impact the enforceability of the contract.

Mistake

An incorrect belief or understanding regarding a fact, judgment, or event that can affect the validity of a contract.

Avoidance

The legal process or action taken to nullify or declare a transaction void, preventing its enforcement.

  • Understand the criteria and circumstances that allow for the rescission of a contract based on misrepresentation.
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Verified Answer

PK
Prajil KottoorMay 26, 2024
Final Answer :
B
Explanation :
For avoidance of a contract,in addition to proving the elements of mutual mistake,a person trying to avoid on the ground of unilateral mistake must show either one of the following: (1)the nonmistaken party caused or had reason to know of the mistake or (2)it would be unconscionable to enforce the contract.