Final answer:
Yes, contract rescission can be based upon a unilateral mistake. The mistaken party can rescind the contract if the other party is aware of the mistake or should have been aware of it.
Step-by-step explanation:
Yes, contract rescission can be based upon a unilateral mistake. When one party makes a mistake about a material fact or term in the contract, and the other party is aware of the mistake or should have been aware of it, the mistaken party may have grounds to rescind the contract.
For example, if a buyer agrees to purchase a painting based on the belief that it is an original, but later discovers that it is a forgery, the buyer may seek to rescind the contract due to the unilateral mistake.
However, the mistaken party must act promptly upon discovering the mistake and promptly notify the other party in order to exercise their right to rescind the contract.