Mistake

In the context of contract law, a "mistake" refers to a situation where one or both parties misunderstood a key fact or term when forming the contract. This misunderstanding can affect the agreement's validity. There are two main types: mutual mistake, where both parties share the same incorrect belief, and unilateral mistake, where only one party is mistaken. If a mistake is significant enough, it may allow the affected party to void the contract or seek other remedies because the agreement was based on incorrect information that fundamentally alters the deal.