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Which of the following does not make a contract voidable?

A. Intentionally lying to someone about the subject of the contract under circumstances where the other party, who wants to rescind the contract, reasonably relied upon the misrepresented fact.

B. Both parties are mistaken about an important aspect of the contract.

C. Only one party is mistaken about the subject of the contract, and the non-mistaken party was actually and reasonably unaware of that individual's mistaken belief of fact.

Answer :

Final answer:

Option c, where only one party is making a mistake about the subject of the contract, and the non-mistaken party was actually and reasonably unaware of that individual's mistaken belief of fact, does not make a contract voidable. This is because there is no intentional misrepresentation or mutual mistake affecting the contract's validity.

Explanation:

The question revolves around identifying which scenario does not make a contract voidable. The options given are a mix of situations involving misrepresentation, mutual mistake, and unilateral mistake. Here's the breakdown of these options:

  • Intentionally lying about the subject of the contract, where the misled party relied on the misrepresented fact, typically renders a contract voidable, as it involves fraudulent misrepresentation.
  • Mutual mistakes about an essential aspect of the contract could also make it voidable since both parties have an incorrect understanding of a critical component.
  • However, when only one party is mistaken about the subject of the contract, and the non-mistaken party was actually and reasonably unaware of the other's mistaken belief, such a scenario does not inherently make the contract voidable. This is because the non-mistaken party has not contributed to the mistake nor exploited it, maintaining the integrity of the contractual agreement as long as that mistake is not fundamental to the contract’s nature.

Therefore, c. where only one party is making a mistake about the subject of the contract, and the non-mistaken party was actually and reasonably unaware of that individual's mistaken belief of fact, does not make a contract voidable. This choice represents a situation where the contract's validity is not compromised by deception or mutual misunderstanding, distinguishing it from situations involving fraud or collective error that directly impact contract enforcement and fairness.

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