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Misunderstanding and Mistake

An overview of the defenses of misunderstanding and mistake to the formation of a contract.

Learning Outcomes

On completion of the lesson, the student will be able to:

  1. Distinguish between mistake and misunderstanding.
  2. Explain why misunderstanding results in no contract being formed.
  3. Explain when a contract is reformed because of a mistake in integration.
  4. Explain the remedy for mistake in performance.
  5. Apply the elements of mutual mistake to particular fact situations.
  6. Distinguish between unilateral mistake and mutual mistake.
  7. Analyze a release to determine whether it is enforceable.
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