Which of the Following Is a Ground for Avoidance of a Contract

question 24

Multiple Choice

Which of the following is a ground for avoidance of a contract based on a unilateral mistake?

• A)Both parties are mistaken about a fact.
• B)The nonmistaken party caused the mistake.
• C)The mistaken party had reason to know of the mistake.
• D)Person affected by the mistake does not bear the risk for it.

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Definitions:

Cash Savings

Funds that are kept on hand or in a bank account and are readily available for use in emergencies or for future purchases.

Simple Rate of Return

The percentage of annual incremental net operating income to the initial investment cost.

Cash Operating Costs

Expenses directly related to the production of goods or provision of services that must be paid in cash.

Annual Depreciation

The allocation of the cost of an asset over its useful life, recognized each year.