What is the difference between an unilateral mistake and a mutual ...

[rosent76]

What is the difference between an unilateral mistake and a mutual mistake? Under what circumstances will a court refuse to rescind a contract based on the defense of a mistake?

Question 2

A treaty between two countries is said to be _____, and a treaty between three or more countries is said to be _____.
 A) bitreaty; tritreaty
 B) bitreaty; multitreaty
 C) bilateral; multilateral
 D) biratified; multiratified

[rleezy04]

Answer to Question 1

A unilateral mistake occurs when only one party enters a contract under a mistaken assumption; a mutual mistake, on the other hand, occurs when both parties contract based on the same factual error. However, the defense of mistake is not a cure-all for all bad deals. Courts will not rescind contracts based on the following:
A prediction error: a contract based on a prediction that proved wrong, cannot be rescinded.
A mistaken value: not knowing the value of an item is not enough to take back a deal.
Conscious uncertainty: no rescission is permitted where one of the parties knows he is taking on a risk; that is, he realizes there is uncertainty about the quality of the thing being exchanged.

Answer to Question 2

C

[rosent76]

Thank you

[rleezy04]

No problemo