Question

Paco buys a violin from beverly for $250. Although the violin is very old, neither party belives that it is valuable. later, however, an antiqes dealer informs the parties that the violin is rare and worth thousands of dollars. Can Beverly rescind/ cancel the contract?

A. No Although both parties are mistaken, they are mistaken as to the value rather than mistake of fact. Only a mistake as to the fact warrants contract rescission/ cancellation

b. Yes, as lobng as the msiatke is mutual, then it can be cancelled or rescinded by either party.

c. No, even though it looks like a mutual mistake, in reality it is a unilateral mistake because Beverly is the one protected from such a mistake

Answer 1

A. No Although both parties are mistaken, they are mistaken as to the value rather than mistake of fact. Only a mistake as to the fact warrants contract rescission/ cancellation

Reason

Mistakes of fact occur in two forms—unilateraland bilateral (mutual).A unilateral mistake is made by only one of the contracting parties, whereas, a bilateral mistake is made by both. When it is done by bilaterally and not a factual, then it can not be canceled if one party does not want to.