An agreement is not binding when: a. both parties make a mistake regarding a material fact. b. one party makes a mistake reg
arding a material fact but the mistake is unknown to the other contracting party. c. one party makes a mistake of law. d. both parties make a mistake in judgment.
A). Both parties make a mistake regarding a material fact.
Explanation:
An agreement is demonstrated as a formal decision among two parties after negotiation and mutual approval by both the parties. It is an arrangement that legally binds both the parties upon a specific course of actions to be done in future.
As per the question, an agreement fails to bind when 'both the parties make a mistake regarding material fact' that damages its validity and makes it unenforceable. <u>The ignorance of the valid key elements about the matter of fact makes the agreement invalid.</u> Therefore, it is always advised that an agreement must consider all the key points considering the matter of fact to ensure its legal binding. Thus, <u>option A</u> is the correct answer.
They relied too much on the soviet union, so they had a difficult time standing on their own. Also economic practices during the soviet era have created additional problems.