The Most Fundamental Mistake That Radically Changes the Nature of the Bargain

question 90

True/False

The most fundamental mistake that radically changes the nature of the bargain of the parties is a mistake about the existence of the subject matter of the contract.

---

Definitions:

Chapter 11

A provision of the United States Bankruptcy Code that permits businesses to reorganize and restructure their debts while continuing operations.

Reorganization Plan

A strategy employed by corporations to restructure their business for reasons such as improving efficiency, managing debt, or adapting to market changes.

Unsecured Creditors

Creditors who have lent money without obtaining specific assets as collateral, placing them at greater risk in the event of the borrower's bankruptcy.

Secured Creditors

Creditors who have a legal claim to a debtor's collateral in case of default on a loan.