Why is it important to distinguish between unilateral and mutual mistakes?

A) Because it determines which contracts are considered fraudulent.
B) Because it determines which contracts are voidable.
C) Because it determines which contracts lack consideration.
D) Because it determines how much may be awarded in damages under a contract.
E) Because it determines whether punitive damages may be awarded.

Unilateral Mistake

An error made by one party in a contract that is not shared by the other party, potentially affecting the contract's validity.

Mutual Mistakes

A situation in contract law where all parties involved have a shared misunderstanding regarding a basic assumption that significantly impacts the contract.

Voidable Contracts

Contracts that are valid and enforceable on the surface but can be declared void by one or more of the parties due to certain reasons, like misrepresentation or lack of consent.