Contracts
Under Rhode Island law, mutual mistake in a real estate contract refers to:
AA situation where one party misrepresents a material fact
BA situation where both parties share the same erroneous belief about a material fact✓ Correct
CAn error in the purchase price only
DA mistake in the legal description discovered after recording
Explanation
Mutual mistake occurs when both parties to a contract share the same incorrect belief about a material fact at the time of contracting. It may be grounds to rescind or reform the contract.
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