Select the correct definition for "reformation of a contract."

The concept of "reformation of a contract" refers to the process of modifying or redrafting a contract to reflect the true intentions of the parties involved when the original contract does not accurately capture those intentions. This legal remedy can be sought when there has been a mistake in the drafting of the contract, whether due to miscommunication, ambiguity, or clerical errors.

When reformation occurs, it is not simply about finalizing or terminating an agreement; rather, it involves revisiting the terms to ensure they align with what was originally intended by the parties. This is particularly useful in scenarios where the written contract fails to encompass all agreed-upon terms or is inconsistent with the actual agreement made verbally or through conduct.

Understanding reformation is vital in the context of contract law, as it ensures that agreements are honored in a manner consistent with the parties' original intentions, thus providing a foundation for fair enforcement of contracts.