Mutual Mistake Is Always a Basis for Granting Rescission of the Contract

question 17

True/False

Mutual mistake is always a basis for granting rescission of the contract at the request of either party.

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Definitions:

Credit Memo

A paper provided by the seller to the buyer that decreases the amount the buyer must pay to the seller, as per a previously issued invoice.

Note Receivable

A written promise for the payment of a specified amount of money, by a debtor to the lender, with interest, at a future date.

Journalize

The process of recording financial transactions in a journal, which is the first step in the accounting cycle.

Bank Reconciliation

The process of matching and comparing figures from the accounting records against those shown on a bank statement to ensure they are in agreement and correct.