When both parties share a material mistake of fact at the time of contracting, the contract is

• A. Void
• B. Voidable and subject to rescission or reformation
• C. Enforceable
• D. Enforceable only with court approval

Answer: (B)

Mutual mistake about a material fact at the time of contracting makes the deal voidable rather than automatically void or enforceable. When both sides share a mistaken belief about something essential to the bargain, there was no true assent to the facts as they actually exist, so either party can generally choose to unwind the contract. The appropriate remedies are rescission (undoing the contract and returning the parties to their pre-contract positions) or reformation (changing the written terms to reflect what the parties actually intended). This differs from simply enforcing an agreement or declaring it void without a remedy, and it also ignores situations where a party bore the risk of the mistake or where the mistake concerns value rather than a fundamental fact.