Contracts: Defenses: [M] Mistake about a Material Fact

• Mistake about a Material Fact [question focuses on whether fact is material]

• Mutual Mistake – when shared belief is not in accord with the facts.
• A mistake as to market value is generally not considered material. Buyer is stuck with deal. Buyer should have gotten object appraised before entering into K.

• Unilateral Mistake (rarely tested) – one party’s mistake is not a fatal flaw in agreement process unless the other party knows or has reason to know about it.