Defenses

Question 1

Mutual Mistake as to existing facts

Answer 1

If both parties mistaken about existing facts K may be voidable if:

1. Mistake concerns basic assumption
2. Material effect on K
3. Party seeking avoidance didn’t assume risk

Question 2

Unilateral

Answer 2

Only one party mistaken, mistake will not prevent formation of K.

Unless non mistaken party knew of should have known about mistake.