Mistake

Question 1

Common mistake

Answer 1

i)Common mistake
The parties have the same mistaken perception. They have reached an agreement, but share a common mistake about an important fact. Both parties may be said to be in error.

Question 2

Mutual Mistake

Answer 2

(ii)Mutual mistake
Both parties are mistaken but do not share the same mistake. Since the parties are operating at cross-purposes the question is whether they have reached an agreement at all. Neither party may necessarily be in error in the sense that they may both be right but are simply at cross-purposes with one another.

Question 3

Unilateral mistake

Answer 3

One of the parties to the transaction is mistaken as to some element of it. Relief will only be available if the other party knows of the mistake. The description of unilateral mistake is often used in cases of mistaken identity caused by fraud.