The rule is that a party bears the risk of the mistake if
(1) the contract assigns the risk to that party; or
(2) the party was aware at the time of contracting that he or she had only limited knowledge of the facts relevant to assessing the risk of the mistake and decided to enter the contract anyway; or
(3) it is reasonable, in the circumstances for the party to bear the risk of the mistake.
That is the rule.What is the rationale for it? Why assign the risk of the mistake to Wood based on her decision to enter the contract despite her limited knowledge?The rationale is that, by choosing to act on her limited knowledge, she assumes the risk that she is wrong.