Two parties mistakenly agree on a price term that is different from the actual contract term; this situation is an example of which type of mistake?

• A. Unilateral Mistake
• B. Fraud
• C. Bilateral Mistake
• D. Mistake

Answer: (C)

Both parties share a mistaken belief about a basic term of the contract. When two sides misinterpret or misstate a fundamental aspect of the deal—such as the agreed price term being different from what the contract actually states—that's a bilateral (mutual) mistake. It involves a shared misunderstanding about a key fact or term that goes to the essence of the agreement.

Unilateral mistake would involve only one party being mistaken, with the other party aware or not responsible for the misperception. Fraud would require intentional deception or reckless disregard for the truth, which isn’t indicated here. The broad label “mistake” is too general when both parties are mistaken about the same term; the specific applicable type is bilateral/mutual mistake.