3. Defenses to Formation
5. Interpretation of the Terms
Mistake; Unilateral and Mutual
In this video, you should consider the following:
- Remember that a mutual mistake will make the contract voidable when such mistake goes to the very essence of the bargain (i.e. both parties thought they were buying and selling a cow, when in fact it was a bull).
- A unilateral mistake where the non‐mistaken party knew or should have known of the mistake prohibits that party from “snapping up” the offer, and there is no contract for the mistaken price.
- A unilateral mistake where he non‐mistaken party neither knew nor should have known of the mistake will result in a contract with the mistake (i.e., the mistaken price) if the mistaken party so elects.
Delivered by:Professor Melissa A. Hale