Mutual Mistake
/ˈmjuːtʃuəl mɪˈsteɪk/
Definitions
- (n.) A shared erroneous belief by both parties to a contract about a basic fact that materially affects the agreed-upon exchange, often voiding or voidable the contract.
The contract was rescinded due to a mutual mistake regarding the ownership of the property.
Related terms
See also
Commentary
Mutual mistake differs from unilateral mistake in that both parties share the erroneous belief; clarity in contract drafting can help avoid such issues.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.