Where a Mistake Is Made in a Contract, and the Contract

question 23

Multiple Choice

Where a mistake is made in a contract, and the contract contemplates some level of risk, then

• A) the court will grant relief to the party adversely affected by the change in accordance with the degree of the effect of the change.
• B) the court will not grant relief to the party adversely affected by the change.
• C) each party is required to act to mitigate its loss.
• D) the court will apply the principles of equity, allocate the risk and apportion the loss.
• E) the change that takes place becomes a legal mistake.

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Definitions:

Target Markets

Specific groups of consumers a business aims to reach with its products or services, identified by characteristics like age, income level, or location.

Direct Investment

Putting money into a business venture, property, or other investments in a foreign country, aiming for a controlling interest.

Ownership

The state or condition of legally possessing an object, property, or enterprise.

Joint Venture

A business arrangement in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task.