How mistakes affect the formation of a contract?
The general rule is that where a mistake has been made by the parties, at common law the contract may be deemed void, as if the contract had never existed.
Equity takes a more flexible approach in that contracts containing certain mistakes may be treated as voidable, where either party can terminate the contract..
What are mistakes in contract law?
In contract law, a mistake is an erroneous belief, at contracting, that certain facts are true.
It can be argued as a defense, and if raised successfully, can lead to the agreement in question being found void ab initio or voidable, or alternatively, an equitable remedy may be provided by the courts..
What are the 5 types of mistakes in contract law?
It examines common mistake, mutual mistake, unilateral mistake, mistake as to identity and mistake as to the document signed (non est factum).
It also considers the impact of each of these types of mistake on the contract and the correction of mistakes by rectification or construction..
What is a mistake as to terms contract law?
A non-agreement mistake refers to where the parties have reached a valid agreement, but would like nullify this agreement due to a mistake as to the terms or subject of the agreement.
This is often referred to as a 'common' mistake, as a claim for non-agreement mistake requires that both parties made the same mistake..
What is risk of mistake in contract law?
$154, When a Party Bears the Risk of a Mistake A party bears the risk of 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 the facts to which the mistake relates but treats his limited .
- Mistakes in contracts may be classified as either unilateral or mutual.
A unilateral mistake is the result of an error by one contracting party about a material fact, while a mutual mistake is shared by both parties to the agreement.
