Which grounds are included for rescission under the MUMIII mnemonic?

• A. Mutual mistake, Unilateral mistake, Misrepresentation, Illegality, Impossibility, Incapacity
• B. Mutual mistake, Unilateral mistake, Misrepresentation, Illegality
• C. Mutual mistake, Illegality, Impossibility, Incapacity
• D. Unilateral mistake, Misrepresentation, Impossibility, Incapacity

Answer: (A)

The question tests knowing every ground that the MUMIII mnemonic covers for rescission. MUMIII is a quick way to remember six situations where a contract can be rescinded so the parties are put back in the position they were in before forming the agreement.

Mutual mistake happens when both parties share the same mistaken belief about a fact essential to the contract, so the agreement effectively rests on a false premise. Rescission is appropriate because the contract’s basis is defeated by that shared error.

Unilateral mistake is when only one party is mistaken. Rescission can be available in this scenario when the other party knew of the mistake, caused it, or there are circumstances that would make enforcing the contract unjust despite the single party’s misapprehension.

Misrepresentation covers situations where one party’s false statement about a material fact induced the other into the contract, undermining genuine consent. Restoring the parties to their status quo ante is the remedy.

Illegality arises when the contract’s subject or its performance would be illegal, so enforcing it would violate the law; rescission applies to unwind the agreement.

Impossibility addresses cases where performance becomes objectively impossible, so there’s no legal way to fulfill the contract, warranting rescission.

Incapacity refers to a party lacking legal capacity (for example, due to age or mental incapacity) to enter a binding contract, which justifies rescission to protect the vulnerable party and preserve fairness.

Because the option includes all six grounds—mutual and unilateral mistake, misrepresentation, illegality, impossibility, and incapacity—it is the best fit for the MUMIII mnemonic. Other choices omit one or more of these grounds, which is why they aren’t correct.