Which of the Following Is Not a Type of Mistake

question 31

Multiple Choice

Which of the following is not a type of mistake that will make a contract unenforceable?

• A)Unilateral mistake by one party that the other party knows of and takes advantage of.
• B)Common mistake by both parties.
• C)Mutual mistake by both parties.
• D)A mistake as to the market value of the property that is the subject of the contract.

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Definitions:

Lessor

The party in a lease agreement who owns the asset and grants its use to another party (the lessee) for a specified period in exchange for payment.

Leveraged Lease

The lessor borrows a portion of the funds needed to buy the equipment to be leased.

Lessee's Standpoint

A perspective focusing on the rights, obligations, and financial impacts on the individual or entity that leases an asset from another.

Unleveraged Lease

A lease agreement where the lessee does not increase their leverage ratio by adding debt to finance the lease.