Which of the Following Is True Regarding a Mistake of Judgment

question 33

Multiple Choice

Which of the following is true regarding a mistake of judgment?

• A) It is a valid defense to enforcement of a contract.
• B) It is not a valid defense to enforcement of a contract.
• C) Whether it is a valid defense to enforcement of a contract depends upon the substantiality of the mistake.
• D) Whether it is a defense to enforcement of a contract depends upon: (1) the substantiality of the mistake, (2) whether the risks were allocated, and (3) timing.

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Definitions:

Fraud

Intentional deception made for personal gain or to damage another individual, involving false representation of facts, omission of information, or other deceitful practices.

Illegal Contract

A contract that is void and unenforceable because it involves activities that are against the law.

Quasi-Contract

A legal concept where a court enforces an obligation between parties as if they had entered into a contract, to prevent unjust enrichment.

Pari Delicto

A legal doctrine meaning "in equal fault," used to indicate that two or more parties are equally at fault for a wrong.