When a mutual mistake of value occurs, the contract remains enforceable by either party.

Question

Quizplus · Accepted Answer

A mutual mistake of value occurs when both parties to a contract make an error in determining the value or price of the subject matter. In such cases, the contract is still enforceable by either party because the mistake does not go to the essence of the agreement. However, the party who suffered the loss as a result of the mistake may be entitled to seek a remedy such as reformation, rescission, or damages.

When a Mutual Mistake of Value Occurs, the Contract Remains