What type of mistake will render a contract void for common mistake?
Asked by: Marilyne Carter DDS | Last update: February 18, 2026Score: 4.3/5 (73 votes)
A common mistake renders a contract void when both parties share a fundamental, shared misunderstanding about a basic assumption, such as the existence of the subject matter, making the contract's performance impossible or radically different from what was intended, effectively robbing it of substance. This usually involves a mistake about the core identity or essential quality of what they're contracting for, not just a minor detail.
Does a common mistake make a contract void?
A contract can be voided under common law rules for mistake in the following situations: Common mistake (where the mistake is shared by both parties, is fundamental and directly affects the basic definition of what the parties are contracting for).
What are four types of mistakes that can invalidate a contract?
Four types of mistakes that can invalidate a contract, making it void or voidable, include Mutual Mistake (both parties share the same fundamental error), Unilateral Mistake (one party is mistaken, and the other knows or should know), Common Mistake (a shared error about the existence or quality of the subject matter, often rendering the contract void), and mistakes involving Misrepresentation or Fraud, where one party is misled by false statements about essential facts, though technically not just a "mistake" but a vitiating factor often grouped with them.
Which one of the following types of mistakes renders a contract void?
Mutual Mistake: This takes place when both parties misunderstand each other's intentions but believe they have reached a consensus. If this misunderstanding is material and undermines the agreement, the contract may be deemed void due to the absence of true consensus.
What are three things that can cause a contract to be void?
Three major reasons a contract becomes void are illegal purpose (involving unlawful acts like drug deals), lack of legal capacity (one party is a minor or mentally incapacitated), and impossibility of performance (an unforeseen event makes it impossible to fulfill). Other common causes include mutual mistakes or fraud, rendering the agreement unenforceable from the start.
Mistake | Contract Law
What are 6 things that void a contract?
We'll cover these terms in more detail later.
- Understanding Void Contracts. ...
- Uncertainty or Ambiguity. ...
- Lack of Legal Capacity. ...
- Incomplete Terms. ...
- Misrepresentation or Fraud. ...
- Common Mistake. ...
- Duress or Undue Influence. ...
- Public Policy or Illegal Activity.
What are five factors that could make a contract void or voidable?
Factors that can render a contract voidable:
- Mistake.
- Misrepresentation.
- Fraud.
- Duress.
- Undue Influence.
- Express Undue Influence.
- Implied Undue Influence.
Which of the following types of mistakes might be grounds to have a contract rescinded?
Under Common Law, rescission may be sought when a contract has been induced by misrepresentation, mistake, duress, or undue influence. Each ground introduces its unique complexities; for instance, misrepresentation can be either fraudulent, negligent, or innocent, each with distinct implications for rescission.
What are the three types of mistakes?
Common law has identified three different types of mistake in contract: the 'unilateral mistake', the 'mutual mistake', and the 'common mistake'. The distinction between the 'common mistake' and the 'mutual mistake' is important.
What mistake is likely to be voidable?
A voidable contract is legally valid but can be canceled by one party due to specific legal defects. Common reasons include misrepresentation, fraud, duress, undue influence, mental incompetence, or mutual mistake.
What are the grounds for a void contract?
Lack of capacity: If a party to the contract cannot understand the contract, such as a minor or person under the influence of alcohol, the contract may be void. Lack of assent: Contracts must have a genuine agreement. If a contract is formed under duress or threats, undue influence, or fraud, it's generally void.
What are the two types of mistakes that may be involved in an attempt to make a contract?
A unilateral mistake rarely voids a contract unless the other party knew of the error or enforcement would be unconscionable. A mutual mistake can make a contract voidable if it involves a basic assumption, materially alters the exchange, and the party seeking relief did not assume the risk.
Which of the following is a common mistake found in contracts?
Using Ambiguous and Unclear Terms
To avoid this common mistake in contract law and any disputes that can arise from it, contractual agreements should contain language that is clear and straightforward. Not only can ambiguities lead to confusion as to each party's obligations, but it can also result in litigation.
What is an example of a common mistake?
Common Mistake Example
An example of a common mistake would be if two parties enter a contract where one person agrees to transport goods for the other person for a specified cost. Later the two parties might realize the price of gas was higher than they both negotiated – raising the transportation cost.
What kinds of mistakes can make a contract void or voidable?
Mutual mistakes generally go to the heart of a contract's terms—if parties never truly agreed on a key fact, the contract is considered voidable. Similarly, common mistakes, especially about non-existent subject matter, usually make the contract void from the start.
What makes a contract legally void?
A contract that is void is not legally enforceable and the parties thereto are not legally obligated to each other. Generally, contracts are void because the subject matter is not legal or one of the contracting parties does not have the competency to contract.
What is the common mistake law?
A non-agreement mistake refers to where the parties have reached a valid agreement, but would like nullify this agreement due to a mistake as to the terms or subject of the agreement. This is often referred to as a 'common' mistake, as a claim for non-agreement mistake requires that both parties made the same mistake.
What are the four types of mistakes?
- Stretch Mistakes. Stretch mistakes are mistakes you make when you are challenging yourself to learn more and are expanding your current abilities. ...
- A-ha Mistakes. A-ha mistakes are when you do what you had set out to do but then realize it was a mistake to do so. ...
- Sloppy Mistakes. ...
- High Stakes Mistakes.
Can a unilateral mistake void a contract?
There are essentially two types of mistakes in Contract Law: mutual mistakes and unilateral mistakes. Both types of mistakes may make the contract invalid or voidable.
Which of the following would allow a court to invalidate a contract on the grounds of unilateral mistake?
The general rule involving unilateral mistakes is that, if the non-mistaken party either knew or should have known of the other party's mistake, the mistake is a “palpable unilateral mistake” which makes the contract voidable by the mistaken party.
What are the factors that invalidate a contract?
There are five vitiating factors, misrepresentation, mistake, duress, undue influence, and illegality.
- MISREPRESENATTION. A misrepresentation is a false statement of fact or law which induces the other party to enter in to the agreement. ...
- MISTAKE. ...
- DURESS. ...
- Undue INFLUENCE. ...
- ILLEGALITY.
Under what circumstances can a contract be declared void or voidable?
Contracts made under coercion or undue influence are voidable at the option of the party subjected to coercion or undue influence. 4. Contracts with minors are void ab initio (from the beginning). However, a minor can either ratify the contract upon reaching majority or disaffirm it.
What could make a contract void?
A contract entered into under duress (threats or coercion) or undue influence (abuse of a position of trust) is not valid. Both situations remove the element of free will. Example: If someone signs a contract because they are being threatened with physical harm, the contract is likely invalid.
Which choice best describes a common cause for a contract being void?
A lack of consideration, illegal subject matter, or impossibility of performance are common causes. Void contracts often fail to meet basic requirements for legality or enforceability, making them invalid from the outset. Voidable contracts, however, arise from issues that compromise the fairness of the agreement.
What's undue influence in contracts?
In contract law, undue influence is a defense used to argue against the formation of a binding contract. It occurs when one party exerts excessive persuasion on another, undermining their free will and leading to a contract that benefits only the influencer.