Rescission is typically available for which types of mistake?

Rescission is typically available for which types of mistake?

• A. Mutual or unilateral mistake
• B. Breach of contract
• C. Injunctions in equity
• D. Specific performance

Answer: (A)

Rescission cancels a contract and restores the parties to their pre-contract positions, and it hinges on a mistake at formation. When both parties share a fundamental misbelief about a fact essential to the agreement, rescission is available because the contract was formed under that faulty premise (mutual mistake). It can also be available when only one party is mistaken (unilateral mistake), typically if the other party knew of the mistake or caused it, or if the mistake concerns a risk the contract allocated. Because rescission rests on these mistaken-formation scenarios, it’s described as available for mutual or unilateral mistakes. The other options point to remedies or actions tied to performance or ongoing obligations (breach, injunctions, specific performance) rather than to a mistaken basis for entering the contract.

Rescission cancels a contract and restores the parties to their pre-contract positions, and it hinges on a mistake at formation. When both parties share a fundamental misbelief about a fact essential to the agreement, rescission is available because the contract was formed under that faulty premise (mutual mistake). It can also be available when only one party is mistaken (unilateral mistake), typically if the other party knew of the mistake or caused it, or if the mistake concerns a risk the contract allocated. Because rescission rests on these mistaken-formation scenarios, it’s described as available for mutual or unilateral mistakes. The other options point to remedies or actions tied to performance or ongoing obligations (breach, injunctions, specific performance) rather than to a mistaken basis for entering the contract.