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…

But a person who signs document under a fundamental mistake as to its nature may have it a voided. For example, A, who was senile, was persuaded to sign a bill of exchange under the misapprehension that it was an assurance. It was held that the bill was void for mistake: Foster v Mackinnon (1869).
Mistake in equity: “The rules of equity prevail over the rules of the common law, where they conflict, and certain equitable principles have been established to mitigate some of the harsher aspects of the common law”.
Accordingly, equity will thus intervene for many purposes:
I. Amend, a written instrument containing patent errors of expression.
II. To refuse to order specific performance of a contract against a defendant who is laboring under a mistake such that it would be grossly unjust to comple him to perform his contract.
III. To set aside an agreement on terms fair to all parties, where common law will not declare it void.
• The sale of a house was held voidable on ground of common mistake as to value, which was not sufficient to render the contract void at law: Grist v Bailey (1966).
Remedies for mistake:
For a mistake in common law, there are many

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