Humber/Ontario Real Estate Course 1 Exam Practice

If both buyer and seller are innocently mistaken about the size of a lot being negotiated, this is best described as a:

1. Unilateral mistake.

2. Common mistake.

3. Negligent misrepresentation.

4. Equitable mistake.

5. Contractual oversight.

6. Related error.

The correct answer is: Common mistake.

The scenario described, where both the buyer and seller are innocently mistaken about the size of a lot being negotiated, is best characterized as a common mistake. In legal terms, a common mistake occurs when both parties involved in a transaction share the same erroneous belief about a fundamental fact that is essential to the agreement, which in this case is the size of the lot. This type of mistake can affect the validity of a contract, as it reflects a misunderstanding that both parties accepted as true. In this context, the idea of a unilateral mistake would involve only one party being mistaken about a fundamental fact, while negligent misrepresentation typically deals with false statements made carelessly by one party that lead the other party to believe something incorrect. An equitable mistake pertains to more complex situations involving fairness and the court's discretion, and contractual oversight usually relates to errors in the contract's drafting or terms. Related errors are not commonly used terminology within this context. Thus, "common mistake" accurately captures the essence of both parties being misinformed in a mutual manner, distinguishing it from other terms that deal with different types of misunderstandings.