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contract law recognizes two kinds of mistakes about facts existing at the time a contract is created mutual mistake and unilateral mistake we will first discuss mutual mistake technically speaking mutual mistake is not a defense against enforcement of a contract unlike duress or misrepresentation the defenses alleged that the bargaining process has been tainted by one partys misconduct mutual mistake however can occur even in the absence of wrongdoing by either party section 152 of the second Restatement addresses mutual mistake it provides that when both parties are mistaken about a basic assumption on which the contract was made and that mistake has an adverse material effect on only one party the adversely affected party may void the contract unless he bears the risk of the mistake what would be an example of the mistake as to a basic assumption that has a material effect on one party lets consider a hypothetical the facts are based on the Sherrod case in your text which may or ma
