If Both Parties to a Contract Misunderstand Each Other Regarding

question 24

Multiple Choice

If both parties to a contract misunderstand each other regarding an essential fact the contract is:

• A)void because of mutual mistake.
• B)voidable because of unilateral mistake regarding the identity of one party.
• C)void because of unilateral mistake.
• D)void because of common mistake.

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Definitions:

Court Orders

Legal directives issued by a judge or a court that require a person or entity to do or not do specific actions.

Securities Exchange Act of 1934

A law governing the trading of securities, such as stocks and bonds, aiming to prevent fraud and manipulation in the securities markets.

Scienter

refers to knowledge of wrongdoing or fraudulent intent, often a necessary element to prove liability in fraud cases.

Civil Liability

The responsibility to compensate for losses or damages caused to another party due to negligence or unlawful acts within civil law.