Asked by James Acsayan on Apr 27, 2024
Verified
Which of the following is not a required element to avoid a contract due to mutual mistake?
A) The mistake relates to a basic assumption on which the contract was made.
B) The mistake has a material effect on the agreed-upon exchange.
C) The mistake was not readily apparent to either party at the time of contract.
D) The party adversely affected by the mistake does not bear the risk of the mistake.
Mutual Mistake
A contract law term where all parties involved have a mistaken understanding about a crucial aspect of the agreement.
Basic Assumption
A fundamental belief or principle that is accepted as true without need for proof, underlying the basis of an argument or theory.
Material Effect
An impact significant enough to influence a decision, outcome, or valuation, often used in legal and financial contexts.
- Understand the legal grounds for avoiding a contract due to mistake, fraud, or misrepresentation.
Verified Answer
JS
Jahed ShibloApr 30, 2024
Final Answer :
C
Explanation :
When both parties are mistaken the resulting contract can be avoided if the three following elements are present: (1)the mistake relates to a basic assumption on which the contract was made, (2)the mistake has a material effect on the agreed-upon exchange,and (3)the party adversely affected by the mistake does not bear the risk of the mistake.
Learning Objectives
- Understand the legal grounds for avoiding a contract due to mistake, fraud, or misrepresentation.