Essay On Mistake In Law

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Definition of mistake in a contract: In second part of 19th century the idea of mistake came into law. So all people start to know about it. Even with best of intentions, Mistake can happen. However there are many meaning of mistake in a contract. Mistake, a contract may be held void where the contracting parties have contracted built upon some form. When parties enter into a contact and they do something incorrect, in this way we can define mistake in a contract. On other hand we can say: is a wrong thinking, when a person enters into contract and he believes that thing is correct. Categories of mistake: The mistake in a contract is an important part of contract and it can cause many things in contract. Common law has identified three categories…show more content…
2- Mistake of fact. First, mistake of law; after a person enters into a contract and he or she don’t have information of the law in the state or place where agreement make, and this agreement is affected by mistakes but it is not void. So that leads us to know that ignorance of law is not an justification. if a party is induced to enter into a contract by the’ mistake of law’ so a contract is not valid. According to Paul Latimer book:” A person who makes a payment under a mistake of law may be able to recover that payment by restitution”. • A and B make a contract grounded on the erroneous belief that a particular debt is barred by the Indian law of Limitation; the contract is not voidable. Then, mistake of fact; this type of mistake happen when both the parties enter into a contract is below a mistake, the contract is cancelled. • A sells a cow to B for $80 because it is an infertile cow. The cow is actually pregnant and worth $1000. The contract is void. Sherwood v. Walker (MI). Anti-Illustration: Lady found a stone and sold it as a Topaz for $1 ($25 today). It was a raw uncut diamond. worth $700 (today $17,000). The contract is not voidable. There was no mistake because neither party knew what the stone was. Wood v. Boynton
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