The Elements of Defense of Unilateral Mistake in Nevada
In Nevada, the defense of unilateral mistake is available where:
- Mistake made by one party at the time of formation of a contract concerning a vital fact upon which they based their bargain;
- The mistake materially and adversely alters the contract;
- That party does not bear the risk of mistake; and
- The other party has reason to know of the mistake or caused it.
Unilateral Mistake may allow a party to a contract to obtain relief from that agreement. Home Savers, Inc. v. United Sec. Co., 103 Nev. 357, 358-59, 741 P.2d 1355, 1356-57 (1987) (adopting Restatement (Second) of Contracts § 153 (1981)). It occurs when one party makes a mistake as to a basic assumption of the contract, that party does not bear the risk of mistake, and the other party has reason to know of the mistake or caused it. Id.
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