Identify a true statement about rescinding a contract due to a mutual mistake.

Multiple choice question.

A contract may not be rescinded based on mutual mistake.

A contract may be rescinded based on mutual mistake, but only by court order.

Rescinding a contract due to a mutual mistake is fair because an ambiguity in some key fact prevented the parties from being in actual agreement.

Rescinding a contract based on mutual mistake is unfair because as a general rule of contract law, bad bargains are still enforceable.