Contracts

Mutual mistake of fact in a real estate contract occurs when:

AOnly the buyer makes an error
BBoth parties are mistaken about a fundamental fact that was the basis for the contract✓ Correct
CThe agent makes a calculation error
DBoth parties forget to include a clause

Explanation

Mutual mistake of fact (where both parties share a fundamental misunderstanding about a basic fact) may allow the contract to be reformed or rescinded, as there was no true meeting of the minds.

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