Week 6 - Mistake

Question 1

What is the general rule with contracts about mistakes?

Answer 1

Caveat Emptor - buyer beware

Question 2

What can happen to a contract if the mistake is fundamental to the contract?

Answer 2

It can be held void

Question 3

What are the three types of mistake?

Answer 3

• common mistake
• mutual mistake
• unilateral mistake

Question 4

Define common mistake

Answer 4

Where parties have made the same mistake - both wrong about an aspect

Question 5

Define mutual mistake

Answer 5

Both parties have made a mistake, but they have each made a different mistake

Question 6

Define unilateral mistake

Answer 6

When only one party is mistaken, usually about a term of a contract, and the other party knows / should have known

Question 7

Which mistake is most common nowadays?

Answer 7

Unilateral

Question 8

Which mistake is least common nowadays?

Answer 8

Mutual

Question 9

What kind of mistake can render a contact void?

Answer 9

An operative mistake - goes to the very heart of the contract