When both parties to an agreement are mistaken as to a material fact, the contract:
A) is enforced because the mistake is mutual
B) may be voidable
C) is enforced because a mistake does not provide a basis for relief
D) requires amendment by the court
E) none of the other choices

Question

Quizplus · Accepted Answer

If both parties to a contract are mistaken as to a material fact, the contract may be voidable because there was no meeting of the minds on that particular issue. This means that one or both parties may have entered into the contract based on a mistaken belief, and would not have done so otherwise. Therefore, the contract can be canceled or rescinded.

When Both Parties to an Agreement Are Mistaken as to a Material