Final answer:
A contract between Gerald and Ken regarding the sale of land may be rescinded if there is a mistake concerning a basic assumption on which the contract was made, like the dimensions or acreage of the land, which would affect the contract's core terms and undermine the meeting of the minds.
Step-by-step explanation:
Within contract law, the ability to rescind a contract arises when there is a mutual mistake that affects a basic assumption on which a contract was made. Such a mistake must significantly impact the agreed upon exchange. In the scenario involving Bomgar Company, Gerald, and Ken, if the mistake in the furnished information is about a fundamental aspect of the agreement, such as the size or boundaries of the land, it goes to the heart of the contract, thus allowing the possibility of rescission.
If the mistake alters the essence of what was bargained for, it undermines one of the contract's core components — the meeting of the minds, where both parties have a common understanding about the terms of the contract. Since both parties are entering the contract with different beliefs concerning a basic assumption (e.g., the dimension or acreage of the property), they may not be truly in accord about what they are agreeing to. In this case, neither Gerald nor Ken can be expected to be experts in the validation of property titles, and a significant error would impede their ability to make an informed decision.
Under these circumstances, the contract may be rescinded if the mistake is regarding a basic assumption on which the contract was made. It suggests that the error is so central to the contract's purpose that without correcting it, the transaction would be substantially different from what was intended by both parties.