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In Nevada, the defense of unilateral mistake is available where:

  1. Mistake made by one party at the time of formation of a contract concerning a vital fact upon which they based their bargain;
  2. The mistake materially and adversely alters the contract;
  3. That party does not bear the risk of mistake; and
  4. 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.

About the Author

Jay Young is a Las Vegas, Nevada attorney. His practice focuses on business law, business litigation, and acting as an Arbitrator and Mediator.

Mr. Young can be reached at 702.667.4868 or at jay@h2law.com.