ABSTRACT

This chapter looks at the doctrine of mistake, a vitiating factor in contract law. It explains the effect of a finding of mistake upon an agreement. A finding of mistake can impact upon the enforceability of a contract if either or both of the parties have entered into an agreement under some form of misunderstanding. The recognised grounds of mistake are limited for good reason. A common mistake will arise where both parties have made the same mistake. Both are mistaken about a primary fact that is pivotal to the contract. A mistake in title will occur when, unbeknown to both of the parties, the buyer already owns the item that the seller is trying to sell to him. There are two types of unilateral mistake that can render a contract void at common law: Mistake as to identity and Mistake concerning the nature of the document.