Contracts

A Nevada real estate agent prepares a purchase contract but makes a mathematical error in calculating the prorated property taxes. What type of contract issue is this?

AUnilateral mistake — only one party made the error — which may allow rescission in limited circumstances✓ Correct
BFraud requiring criminal prosecution
CAn automatically void contract under Nevada law
DMutual mistake voiding the contract without court action

Explanation

A mathematical error in a contract is a unilateral mistake (mistake by one party). Under Nevada contract law, a unilateral mistake generally does not automatically void or rescind a contract — the party at fault typically bears the risk. However, if the mistake is material, the other party knew of the mistake, or if it would be unconscionable to enforce the contract, a court may allow rescission. The agent's computational error in proration is typically corrected through an amendment or adjusted at closing through the escrow process rather than voiding the contract.

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