Mistake in Contract Law

A mistake in contract law occurs when one or both parties misunderstand a key aspect of the agreement, affecting their decision to enter into the contract. There are two main types: a unilateral mistake, where only one party is mistaken, and a mutual mistake, where both parties share the misunderstanding. Depending on the nature of the mistake, it may allow the affected party to void the contract or seek a remedy. The legal principle recognizes that a contract requires a meeting of the minds, and significant misunderstandings can undermine that agreement.