Which of the following is true regarding a mistake of judgment?
A) It is a valid defense to enforcement of a contract.
B) It is not a valid defense to enforcement of a contract.
C) Whether it is a valid defense to enforcement of a contract depends upon the substantiality of the mistake.
D) Whether it is a defense to enforcement of a contract depends upon: (1) the substantiality of the mistake, (2) whether the risks were allocated, and (3) timing.

Question

Quizplus · Accepted Answer

A mistake of judgment is not a valid defense to enforcement of a contract. A party is presumed to have assumed the risk that their judgment may turn out to be incorrect. However, if the mistake is mutual or involves a material aspect of the contract, it may render the contract voidable.

Which of the Following Is True Regarding a Mistake of Judgment