Doctrine of Unilateral Mistake

The Doctrine of Unilateral Mistake occurs when only one party to an agreement is mistaken about a material fact, and the other party is aware of this mistake but does not correct it. Generally, the mistaken party can cancel or avoid the contract if the mistake is significant and leads to unfairness. However, if the non-mistaken party was unaware of the mistake or if the mistake was obvious, the contract typically remains valid. Essentially, this doctrine protects parties from being bound by agreements based on genuine, significant errors that were not mutually recognized or addressed.