Tom agrees to buy a painting believing it to be an original Picasso, while the seller also believes it is genuine. Both later discover it is actually a worthless copy. This scenario represents:

Question

Answer

Fraudulent misrepresentation, which allows Tom to sue for damages.

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No legal grounds for rescission because both parties accepted the risk of being wrong.

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Mutual (bilateral) mistake of material fact, which typically allows either party to rescind the contract.

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Unilateral mistake, which allows only Tom to rescind the contract.

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Tom agrees to buy a painting believing it to be an original Picasso, while the s...

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