Contracts
Under Montana law, a real estate purchase contract may be rescinded for 'mutual mistake' when:
AOne party simply changes their mind after signing
BBoth parties entered the contract based on a shared, fundamental misunderstanding about a material fact that, if known, would have prevented the contract✓ Correct
CThe property appraises for less than the purchase price
DThe buyer cannot qualify for financing
Explanation
Mutual mistake occurs when both parties share a fundamental misunderstanding about a material fact at the time of contracting. Courts may rescind a contract based on mutual mistake when it affects the essential purpose of the agreement.
Related Montana Contracts Questions
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