70.7k views
1 vote
Will a mistake in value of the subject of the contract allow a contract to be rescinded?

User Amplify
by
7.9k points

1 Answer

4 votes

Answer:

Whether a mistake in the value of the subject of a contract will allow the contract to be rescinded depends on the specific circumstances of the case and the applicable law in the jurisdiction. Generally, a mistake in the value of the subject of the contract is not sufficient on its own to allow a contract to be rescinded.

In order for a contract to be rescinded based on a mistake, the mistake must be material, meaning that it must have a significant effect on the performance of the contract. In addition, the mistake must be mutual, meaning that both parties to the contract must have been mistaken about the same material fact. Finally, the mistake must not have been caused by the fault of either party.

If these requirements are met, the affected party may have grounds to seek rescission of the contract or reformation of the contract to reflect the true value of the subject matter. However, it is important to note that the legal requirements for rescission or reformation of a contract based on a mistake can vary depending on the jurisdiction and the specific facts of the case. It is therefore advisable to seek the advice of a qualified attorney in the relevant jurisdiction.

User Ji ASH
by
7.9k points