Which phrase describes the act of correcting a contract that contains a mistake?

The phrase that accurately describes the act of correcting a contract that contains a mistake is "reformation of a contract." This legal remedy allows the terms of a contract to be changed or corrected to reflect the true intent of the parties involved when the original contract contains errors or inaccuracies. Reformation ensures that the contract operates as intended by both parties, making it enforceable under the corrected terms.

In contrast, rescission refers to the cancellation of a contract, effectively nullifying the agreement as if it never existed. Termination, on the other hand, involves ending a contract, which may not address the need to correct the terms of an agreement. Modification entails making changes to the contract terms but typically requires the agreement of both parties and is more about adjusting existing terms rather than correcting an error in the original intent. Reformation specifically addresses the need to amend mistakes rather than altering the agreement or terminating it altogether.