Contracts
What is 'mutual mistake' as a basis for rescinding a Delaware real estate contract?
AWhen both parties made a mistake about the contract price
BWhen both parties were mistaken about a material fact at the time of contracting, which may be grounds to rescind✓ Correct
CWhen both parties misunderstood the commission terms
DWhen both parties forgot to sign an addendum
Explanation
Mutual mistake occurs when both parties shared an erroneous belief about a material fact at the time of contracting. If the mistake goes to the essence of the agreement, either party may seek rescission.
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