A party bears the risk of a mistake when
(a)
the risk is allocated to him by agreement of the parties, or
(b)
he is aware, at the time the contract is made, that he has only limited knowledge with respect to facts to which the mistake relates but treats his limited knowledge as sufficient, or
(c)
the risk is allocated to him by the court on the ground that it is reasonable in the circumstances to do so.
Where a writing that evidences or embodies an agreement in whole or in part fails to express theagreement because of a mistake of both parties as to the contents or effect of the writing, the courtmay at the request of a party reform the writing to express the agreement, except to the extent thatrights of third parties such as good faith purchasers for value will be unfairly affected.
A mistaken party's fault in failing to know or discover the facts before making the contract does not bar him from avoidance or reformation under the rules stated in this Chapter, unless his fault amounts to a failure to act in good faith and in accordance with reasonable standards of fair dealing.
In choosing among the reasonable meanings of a promise or agreement or a term thereof, that meaning is generally preferred which operates against the party who supplies the words or from whom a writing otherwise proceeds.
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