Mutual Mistake

909 words 4 pages
Abstract Mutual Mistake of fact is when both parties of a contract make an assumption of fact when contract is formed and signed. The mistake must significantly change what you have to do under the contract, almost to the point where it’s an entirely different agreement. Although, if you knew there was a strong chance or probability of mistake at the time the contract was signed, you may have assumed the risk of that mistake. You therefore cannot use the mutual mistake defense. Not all cases of Mutual Mistake are strong enough to void a contract.
Contract Law: Mistake of Fact In the given case: Josh Hartly was interested in purchasing a new car and visits his local auto dealer. In the course of his negotiations, he tells the
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The UCC is most often used to resolve contract disputes for the sale of goods (LaMance, 2013). The UCC only deals with merchants, which is defined as anyone with a special knowledge in a given commercial field. Therefore, a sale of goods between two private, non-merchant parties will not be subject to UCC requirements (Rivera, 2013). In terms of winners and losers, there are no winners. One could say that the winner would be the buyer because they won the defense of mutual mistake of fact but they are still with out what they were trying to buy in the first place. The loser, though, would be the seller because they have lost business with the possible customer and made no profit in the sale that is now void.

Emanuel, S. L. (2011). Mistake. In Wolters Kluwer MBE Bar Prep. Retrieved from
LaMance, K. (2011, November 8). Revoking contracts: mutual mistake lawyers. Legal Match. Retrieved from
LaMance, K. (2013, August 28). Uniform commercial code lawyers. Legal Match. Retrieved from
Rivera, J. (2013, November 12). When does the UCC not apply to sale of goods? Legal Match. Retrieved from


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