Doctrine of Mistake

The Doctrine of Mistake refers to a legal principle that allows contracts to be set aside when parties have a misunderstanding about a key fact essential to the agreement. If both parties were mistaken about something important—such as the identity of the item being sold or the nature of the agreement—they may not be bound by the contract. This principle ensures fairness, protecting parties from being held to agreements based on false assumptions. It highlights the importance of clarity and mutual understanding in contracts.