M
Mistake

Mistake

Mistake: A legal doctrine addressing situations where a contract is formed under a fundamental error about a key fact, potentially preventing contract formation or leading to voiding or reformation.

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Definition

A legal doctrine under which the formation of a contract may be prevented if a party entered into the contract under a material misfile of fact.

Purpose

The doctrine of mistake is used to address situations where one or both parties entered into a contract based on a fundamental error about a key fact. This can prevent the formation of a valid contract or lead to the contract being voided or reformed.

Examples of Use

  • Contract Law: A buyer and seller enter into a contract under the mistaken belief that a painting is an original when it is actually a replica.
  • Real Estate: Both parties mistakenly believe a piece of property includes certain rights or easements that it does not.
  • Business Agreements: A supplier and manufacturer sign a contract based on incorrect assumptions about the specifications of a product.

Related Terms

  • Mutual Mistake: Both parties share the same erroneous belief regarding a fact that is central to the contract.
  • Unilateral Mistake: Only one party is mistaken about a material fact, which can sometimes affect the contract's enforceability.
  • Misrepresentation: A false statement of fact that induces another party to enter into a contract.

Notes

  • Courts consider whether the mistake significantly impacts the contract's purpose or performance.
  • Remedies for mistakes can include contract rescission (cancellation) or reformation (modification).
  • Legal advice is often necessary to navigate the complexities of contract law and mistake doctrines.

Related Terms