A Party to a Contract May Be Able to Avoid

question 56

Multiple Choice

A party to a contract may be able to avoid the contract if:

• A) there is a mutual mistake,and the party undertook to bear the risk by conscious allocation.
• B) there is a unilateral mistake,and the party undertook to bear the risk by conscious ignorance.
• C) there was a mistake and the mistaken party was at fault in not discovering the problem before making the contract.
• D) None of these.

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Definitions:

Penicillin

A group of antibiotics derived from Penicillium fungi, used for treating bacterial infections.

Privatization

The process of transferring ownership of a business, enterprise, agency, or public service from the government to private individuals or organizations.

Government

The governing body of a nation, state, or community, responsible for making and enforcing laws, policies and for regulating public affairs.

Profit

The financial gain obtained when the revenue generated from business activities exceeds the expenses, costs, and taxes involved in sustaining the activity.