Mistake

Question 1

is a belief that is not in accord with the facts.

Answer 1

Mistake

Question 2

Mistake of both parties at time of contracting
Concerns basic assumption of contract
Has a material effect on performances
Unless adversely affected party bore risk of mistake
Then - Voidable by adversely affected party

Answer 2

Mutual Mistake

Question 3

the risk is allocated to him by agreement of the parties, or
he is aware, at the time the contract is made, that he has only limited knowledge with respect to the facts to which the mistake relates but treats his limited knowledge as sufficient, or
the risk is allocated to him by the court on the ground that it is reasonable in the circumstances to do so.

Answer 3

A party bears the risk of a mistake when

Question 4

Assume Risk if

Answer 4

The risk is allocated to him by the court or
Aware at time contract is made that he has limited knowledge regarding facts relating to mistake but treats knowledge as sufficient or
The risk is allocated to him by agreement

Question 5

Where a mistake of one party at the time a contract was made as to a basic assumption on which he made the contract has a material effect on the agreed exchange of performances that is adverse to him, the contract is voidable by him if he does not bear the risk of the mistake under the rule stated in § 154, and

Answer 5

the effect of the mistake is such that enforcement of the contract would be unconscionable, or
the other party had reason to know of the mistake or his fault caused the mistake.

Unilateral Mistake

Question 6

Mistake of one party at time of contracting
Concerns a basic assumption he made regarding the contract
Has a material effect on performances
Material effect is adverse to mistaken party
Effect of mistake would make enforcement unconscionable or
Other party had reason to know of the mistake or his fault caused it.

Answer 6

Elements Unilateral Mistake

Question 7

mistake of one party
at time contract was made
as to basic assumption on which he made the contract
has a material effect on agreed exchange of performances
is adverse to him
THEN contract is voidable by him
if does not bear risk of mistake AND
effect of mistake is such that enforcement of contract would be unconscionable, OR
other party had reason to know of the mistake or his fault caused the mistake.

Answer 7

Unilateral

Question 8

mistake of both parties
at the time a contract was made
as to a basic assumption on which the contract was made
has a material effect on the agreed exchange of performances,
THEN contract is voidable by adversely affected party
unless he bears the risk of the mistake

Answer 8

Mutual

Question 9

For the doctrine of mistake to apply, the erroneous belief must relate to ___________________ at the time the contract is executed.

Answer 9

a fact in existence

Question 10

A ________ ________ supports rescission when the mistaken belief relates to a basic assumption of the parties upon which the contract is made and which materially affects the agreed performances of the parties.

Answer 10

mutual mistake

Question 11

Rescission is not available to a party that has ______________________ in connection with the mistake.

Answer 11

assumed the risk of loss

Question 12

For the doctrine of mistake to apply, the ________ _______ must relate to a fact in existence at the time the contract is executed.

Answer 12

erroneous belief

Question 13

A contract based upon a unilateral mistake may be rescinded if

Answer 13

The mistake relates to a material feature of the contract
The mistake occurred notwithstanding the exercise of reasonable care
That the mistake is of such grave consequence that enforcement of the contract would be unconscionable, and
The other party can be placed in the status quo.