Rescission Is Not Available for a Contract Involving Mistake

question 1

True/False

Rescission is not available for a contract involving mistake.

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Definitions:

Protective Covenants

Clauses in loan agreements that are designed to protect the lender by restricting the borrower’s actions, such as limiting dividends, adding debt, or asset sales.

Technical Insolvency

A situation where a company is unable to meet its short-term liabilities with its current assets, despite possibly having a greater amount in long-term assets.

Systematic Risk

The risk inherent to the entire market or market segment.