When Both Parties Are Mistaken as to the Subject Matter

question 31

Multiple Choice

When both parties are mistaken as to the subject matter of a contract,which of the following is true?

• A) Either party can rescind the contract.
• B) Only the party injured by the mistake can rescind the contract.
• C) Only the party who first discovers the mistake can rescind the contract.
• D) Neither party can rescind the contract.
• E) Either party can rescind the contract or recover damages from the other party.

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Definitions:

Cash Proceeds

The total amount of cash received from transactions, sales, or during a specific period.

Lease Financing

A method of financing where an entity uses leased property or equipment for its operations in exchange for periodic payments.

Taxable Income

The amount of income that is subject to taxation, after all deductions and exemptions are applied.

Pension Plan

A financial program set by an employer to provide retirement income to employees.