Contracts

In Hawaii, what is the legal effect of a 'unilateral mistake' in a real estate contract?

AA. Any mistake by one party automatically voids the contract
BB. A unilateral mistake generally does not void a contract unless the other party knew of the mistake or the terms are unconscionable; mutual mistake may provide grounds for rescission✓ Correct
CC. Unilateral mistakes are always grounds for rescission in Hawaii real estate
DD. Only mathematical errors qualify as unilateral mistakes in Hawaii contract law

Explanation

A unilateral mistake (one party's error) generally does not provide grounds to rescind a contract, particularly if the other party acted in good faith without knowledge of the mistake. Courts may grant relief if the other party knew of the mistake and used it to their advantage, or if the terms are unconscionable. Mutual mistake (both parties share the same error about a material fact) may provide stronger grounds for rescission.

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