Question

1. What is the effect of a contract when one party to the contract has made a
mistake?
A. The contract is valid unless the party can show to the court that the mistake
was not due to his own lack of care
B. The contract is void as the party did not make the contract willingly
C. The contract is void as it is unfair to the party that has made the mistake
D. The contract is voidable as the party should be given the opportunity to
choose whether he wants to continue with the contract or not​

Answer 1

Answer:

D. The contract is voidable as the party should be given the opportunity to

choose whether he wants to continue with the contract or not​

Explanation:

When one of the party made mistake in a contract , the power to void the contract fall to the hand of the second party.

The second party generally has two choices:

- They can legally ended the contract (since the first party failed to fulfill the obligation)

- Or they can also give the first party a chance to correct the mistake and resume the contract as promised

Regardless of which options the First party is legally obligated to accept the decisions made by the Second party. This is why the term "voidable" is used/.