Week 6 - Mistake Flashcards
1
Q
What is the general rule with contracts about mistakes?
A
Caveat Emptor - buyer beware
2
Q
What can happen to a contract if the mistake is fundamental to the contract?
A
It can be held void
3
Q
What are the three types of mistake?
A
- common mistake
- mutual mistake
- unilateral mistake
4
Q
Define common mistake
A
Where parties have made the same mistake - both wrong about an aspect
5
Q
Define mutual mistake
A
Both parties have made a mistake, but they have each made a different mistake
6
Q
Define unilateral mistake
A
When only one party is mistaken, usually about a term of a contract, and the other party knows / should have known
7
Q
Which mistake is most common nowadays?
A
Unilateral
8
Q
Which mistake is least common nowadays?
A
Mutual
9
Q
What kind of mistake can render a contact void?
A
An operative mistake - goes to the very heart of the contract
