If both parties are mistaken about a basic assumption of the contract, this is called:

A Unilateral mistake

B Mutual mistake

C Fraud

D Duress

✓ Correct Answer: Option B

Mutual mistake: both parties share an erroneous belief about a basic assumption. The adversely affected party may void the contract if the risk was not allocated.

💡 Why is B) the correct answer?

The correct answer to the question "If both parties are mistaken about a basic assumption of the contract, this is called:" is Option B: Mutual mistake.

The other options — A) Unilateral mistake, C) Fraud, D) Duress — are incorrect for this BAR Exam Prep question. As explained above: Mutual mistake: both parties share an erroneous belief about a basic assumption. The adversely affected party may void the contract if the risk was not allocated.

📚 About This BAR Exam Prep Practice Question

This 2-level BAR Exam Prep question from the Contracts topic is part of BrainForge Quiz's free exam preparation library. Each question includes the correct answer and a detailed explanation to help you understand the underlying concept, not just memorize the answer.

How to use this page: Read the question above, consider all four options (A through D), then check the highlighted correct answer and explanation. For active timed practice, start a free BAR Exam Prep practice test or use flashcards for spaced repetition review.

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If both parties are mistaken about a basic assumption of the contract, this is called:

✓ Correct Answer: Option B

📚 About This BAR Exam Prep Practice Question

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