Property Ownership

In Maine, a 'bilateral mistake' in a real estate contract means:

AOnly the buyer made a mistake
BBoth parties made the same mistake about a material fact✓ Correct
CThe agent made a mistake that affected both parties
DThe contract has two errors

Explanation

A bilateral (mutual) mistake occurs when both parties share the same incorrect belief about a material fact at the time the contract was formed. Courts may allow rescission of a contract based on bilateral mistake.

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