In the context of a unilateral/palpable mistake, which statement is accurate?

In the context of a unilateral mistake, the statement that the contract remains valid unless the other party knew of the mistake is accurate. A unilateral mistake occurs when one party to the contract is mistaken about a fundamental aspect of the contract, while the other party is not. In such cases, the mistaken party may have grounds to seek relief if they can demonstrate that the other party was aware of the mistake and took advantage of it.

The general rule in contract law is that a contract is enforceable unless it is shown that the mistake is material, and the other party had knowledge of that mistake. If the non-mistaken party was unaware of the mistake, then the contractual agreement typically remains valid and enforceable. This principle emphasizes the importance of both parties' understanding and knowledge in contractual agreements and supports fairness in dealings.

In contrast, if both parties were mistaken, this could lead to different implications regarding the contract's validity. However, in a unilateral mistake situation, only one party's misunderstanding impacts the enforceability of the agreement if the other party is not aware of the mistake.