Question

If one party thinks he is selling a property that is located at 1230 Main Street and the other party thinks he’s buying the property at 1230 Main Street, but the contract says the property is located at 123 Main Street, which of the following can be said about the agreement?
1. It is a Bilateral Mistake or a Mutual Mistake.
2. All of these responses are correct.
3. It is an example of an Accord and Satisfaction.
4. The owner of 1230 Main Street is responsible for purchasing the property at 123 Main Street and then making it available for sale to the buyer.

Answer 1

Answer:

1) It is a Bilateral Mistake or a Mutual Mistake.

Explanation:

A mutual or bilateral mistake is defined as an error made by both parties involved in the contract in regards to the same material fact. The two types of possible mistakes are a mistake of law or a mistake of fact. Since both parties are mistaken, the contract is voidable.