Question

Types of Mistake (defense to contract formation)?

Answer 1

Mistake is a defense to contract formation in law. There are several types of mistake that can make a contract void or voidable, including mutual mistake, unilateral mistake, mistake as to existence, and mistake as to terms.

Step-by-step explanation:

Mistake is one of the defenses to contract formation in law. There are several types of mistake that can make a contract void or voidable. These include:

1. Mutual mistake: When both parties to a contract make the same mistake about a fundamental fact, such as the identity of the subject matter, the contract may be void.
2. Unilateral mistake: When only one party makes a mistake about a material fact and the other party is aware of the mistake, the mistaken party may be able to avoid the contract.
3. Mistake as to existence: If both parties mistakenly believe that the subject matter of the contract exists when it does not, the contract may be void.
4. Mistake as to terms: When one or both parties make a mistake about the terms of the contract, it may be void or voidable.