Abstract
This article discusses the legal impact of mistakes made by parties in contractual transactions in common law. It begins by highlighting the difficulty in defining mistakes, and goes on to discuss situations in which courts allow parties to escape performance of contracts concluded on the basis of a mistake. The author has discussed the effect of a mistake in varied circumstances, such as unilateral mistake (mistaken identity), deeds, unjust enrichment and proprietary restitution. The author argues that a claimant should be entitled to relief only in the event of a fundamental mistake. This restricts the situations in which parties can avoid a contract, thereby increasing commercial certainty. The author has analysed separately transactions under contracts and deeds and those which are gratuitous. He concludes by opining that when parties plead mistake as a ground for avoidance, the courts must be cautious in upholding such claims and must allow it in rare circumstances. The author suggests that parties should bear the consequences of their mistakes, as holding otherwise would unfairly prejudice innocent third parties.
Recommended Citation
Davies, P. S.
(2012)
"Making Mistakes,"
National Law School of India Review: Vol. 24:
Iss.
1, Article 16.
Available at:
https://repository.nls.ac.in/nlsir/vol24/iss1/16
