A ____ occurs when one party to a contract enters into it with false information or accidentally makes an error in a significant matter.
A) bilateral mistake
B) unilateral mistake
C) known mistake
D) consolidated mistake
E) voidable mistake

Question

Quizplus · Accepted Answer

A unilateral mistake occurs when only one party is mistaken or has false information. This can make a contract voidable, meaning that the mistaken party can choose to rescind (cancel) the contract. In contrast, a bilateral mistake occurs when both parties are mistaken and can result in the contract being void (unenforceable). A known mistake refers to a situation where both parties are aware of the mistake but choose to proceed with the contract anyway. Consolidated mistake is not a commonly used term in contract law.

A ____ Occurs When One Party to a Contract Enters