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Contract Law Mistake Notes
At or prior to contract formation, one or both of the parties to the contract were MISTAKEN about either: ◦ The content of one or more of the terms of the contract (ie. the contractual obligations); or ◦ Whether they had entered into a contract at all. It can be argued that there is no true consent (no true agreement) and that, consequently, there is no binding contract, where it is clear that they would not have been entered into but for the mistake. There are 3 categories of mistake: 1. The parties to the contract made the same mistake: common mistake; 2. The parties to the contract each mistook each other’s meaning: mutual mistake; 3. Only one party to the contract was mistaken and the other party knew, or ought to have known, that that party was mistaken: unilateral mistake.
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