Contracts
Mutual mistake in a NJ contract occurs when:
AOnly the buyer misunderstands the contract
BBoth parties are mistaken about a material fact at the time of contracting✓ Correct
CThe broker makes an error in calculating the commission
DThe contract contains a typographical error
Explanation
Mutual mistake — where both parties share the same material misunderstanding at the time of contracting — may be grounds to void or rescind the contract.
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