Using the Figure Below, Interpret What Is Occurring at Stage

question 29

Essay

Using the figure below, interpret what is occurring at stage 3.

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Definitions:

Mutual Mistake

A legal concept where both parties involved in a contract have a shared misunderstanding about a critical fact of the contract.

Unilateral Mistake

Occurs when one party to a contract is mistaken about a basic assumption on which they made the contract, and the other party either knows or has reason to know of the mistake.

Standard-Size

Refers to products or items that are made to adhere to specific, established dimensions or norms commonly accepted in their category.

Rescinded Contract

A contract that has been declared void by one or both parties, returning them to the position they were in before the contract was made.