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.
Boost Your Takeoff & Estimating by 37% with AI
- Fast: Save time
- Accurate: Ensure precision
- Simple: Easy to use
- Automated: Fewer errors
- Versatile: For any project
Get Started
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
Try Kreo Free
No installation required
Works on both Windows & Mac
Timely customer support