Which of the Following Is the Best Description of 'Unilateral

question 12

Multiple Choice

Which of the following is the best description of 'unilateral mistake'?

• A) Both parties are mistaken about a material fact that is important to the subject matter of the contract.
• B) One of the parties is mistaken about a material fact regarding the subject matter of the contract, and the other party takes advantage of this mistake.
• C) One of the parties is mistaken as to the nature of the document which they have signed.
• D) Both parties have made the same mistake about the existence or identity of the subject matter of the contract.

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Definitions:

Convertible Bonds

Bonds that permit bondholders to convert them into common stock at the bondholders’ option.

Common Stock

A type of equity security that represents ownership in a corporation, giving holders voting rights and a share in the company's profits through dividends.

Premium

An amount paid in addition to a standard price or rate, often for insurance or an enhanced level of service or coverage.

Interest Expense

The cost incurred by an entity for borrowed funds, recognized as a non-operating expense on the income statement.