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Mutual mistake occurs when both parties of a contract are mistaken as to the terms.(a) False(b) TrueI had been asked this question during an internship interview.Question is taken from Contract System topic in division P.W.D of Civil Engineering Drawing

Answer»

The correct option is (b) True

To elaborate: Each BELIEVES they are contracting to something different. Courts USUALLY try to uphold such mistakes if a REASONABLE interpretation of the terms can be found. However, a contract based on a mutual mistake in judgment does not cause the contract to be voidable by the PARTY that is ADVERSELY affected.



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