Which of the Following Is True About Unilateral Mistakes

question 5

Multiple Choice

Which of the following is true about unilateral mistakes?

• A) The court does not grant rescission even if the mistaken party is slightly negligent.
• B) The court will grant relief even if the person's own negligence is the cause of his or her mistake.
• C) The plaintiff needs to promptly notify the defendant when a mistake is discovered.
• D) The basic rule is that it is grounds for rescission only if both parties to the agreement are acting under a mistaken belief.

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Definitions:

Present Value

Present value is the current worth of a future sum of money or stream of cash flows, given a specified rate of return, adjusting for the time value of money.

Annuity

An annuity is a financial product that pays out a fixed stream of payments to an individual, typically used as an income stream for retirees.

Internal Rate of Return

A financial metric used to evaluate the profitability of potential investments, measuring the rate of return where the net present value of all cash flows from a particular project equals zero.

Present Value Factors

Mathematical factors used in calculating the present value of future cash flows, considering the time value of money.