ACCT350 Chapter Notes - Chapter 13: Rebuttable Presumption, Alimony, Fiduciary
19 Sep 2017
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A unilateral mistake occurs when only one party is mistaken about a material fact regarding the subject matter of the contract. In most cases, the mistaken party is to be permitted to rescind the contract. A mistake made by both parties concerning a material fact that is important to the subject matter of a contract a party may rescind the contract. An ambiguity in a contract may constitute a mutual mistake of a material fact ex: where a word or term in the contract is susceptible to more than one logical interpretation. If there has been a mutual mistake, the contract may be rescinded on the grounds that no contract has been formed because there has been no meeting of the minds between the parties. Example: the parties agreed on a sale of cotton that was to be delivered from bombay by ship. Peerless, however, and each party, in agreeing to the sale, was referring to a different ship.
