Which of the Following Situations Gives Rise to the Application

question 95

Multiple Choice

Which of the following situations gives rise to the application of the equitable remedy of rectification?

• A) Both parties to a contract agree that they want to change some of its terms and thus apply jointly to the court to have the relevant terms altered.
• B) The two parties to a contract have made a mutual mistake and one of these parties is asking the court to choose the more reasonable meaning of the terms in question.
• C) The defendant has a justifiable defence of non est factum.
• D) A written instrument, because of an obvious mistake, does not embody the unchanged terms of an original oral agreement.
• E) The contract is one requiring "utmost good faith."

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Definitions:

Spot Price

The current market price at which a particular asset, such as a commodity, currency, or security, can be bought or sold for immediate delivery.

Gold

A precious metal that serves as a form of investment, currency, and store of value, historically used to hedge against inflation and currency devaluation.

Dividend Yield

A financial ratio that indicates how much a company pays out in dividends each year relative to its stock price, often expressed as a percentage.

Risk-Free Interest Rate

The theoretical return on an investment with no risk of financial loss, typically represented by the yield on government securities.