1172:, a firm processing information in order to transfer title using the information provided by customers lacked the intent to commit illegal or improper acts when the information furnished to it was wrong. It was not part of its job description to know better, and it did not know better and charged only a nominal fee for the clerical work, clearly not including any investigation. Further, it could not be in a conspiracy with another party or several parties who knew the information was wrong but failed to inform the title firm. The title firm could not unknowingly become part of a conspiracy of which it was never informed, and from which it could derive no benefit. The attempt to enhance liability or shift blame by filtering data through an innocent party has been tried before, but where the conduit providing document preparation does not know more than its informants and was not hired or paid to investigate, it is not liable in their place for using their bad facts without guilty knowledge.
1187:
found on a schedule. The schedule had been made up by a panel of experts using standards for adjusting the price differential in overseas goods. The custom clerk used the wrong category of goods and overcharged the duty, and by the time Hynix figured out what had happened, part of a very short statute of limitations on protest had expired. Hynix nevertheless prevailed and received the correction in its tariff rate by showing that such an error "was correctable under 19 U.S.C. § 1520(c) as a mistake of fact or clerical error not amounting to an error in the construction of a law and because the failure to file a protest within ninety days of the liquidation of the entries is without legal consequence in this context".
36:
1090:... transferee is not bound to inquire whether the fiduciary is committing a breach of his obligation as fiduciary in transferring the instrument, and is not chargeable with notice that the fiduciary is committing a breach of his obligation as fiduciary unless he takes the instrument with actual knowledge of such breach or with knowledge of such facts that his action in taking the instrument amounts to bad faith.
109:
1219:, (citation partly omitted), 715 F. Supp. at 1114. On the other hand, an ignorant mistake occurs where "a party is unaware of the existence of the correct alternative set of facts". Id. "In order for the goods to be reliquidated under 1520 (c) (1), the alleged mistake of fact must be an ignorant mistake." Prosegur (citation partly omitted), 140 F. Supp. 2d at 1378.
1186:
in which the Court was faced with the application of a tariff that had been calculated at the wrong rate by a customs clerk. To enforce "anti-dumping" legislation against foreign-made goods, a regulatory scheme was implemented under which such imports were charged a "liquidation duty" at a rate to be
844:, or alternatively, an equitable remedy may be provided by the courts. 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.
941:
For mechanical calculations, a party may be able to set aside the contract on these grounds provided that the other party does not try to take advantage of the mistake, or 'snatch up' the offer (involving a bargain that one did not intend to make, betrayed by an error in arithmetic, etc.). This will
907:
A unilateral mistake is where only one party to a contract is mistaken about the terms or subject-matter contained in a contract. This kind of mistake is more common than other types of mistake. One must first distinguish between mechanical calculations and business errors when looking at unilateral
1064:
The difference is in the extent to which an innocent in the information chain, passing along or using or processing incorrect information, becomes liable. There is a principle that an entity or person cannot be made more liable merely by being in the information chain and passing along information
1001:
In this case, both parties believed there was a "meeting of the minds", but discovered that they were each mistaken about the other party's different meaning. This represents not a mutual mistake but a failure of mutual assent. In this situation, no contract has been formed, since mutual assent is
1134:
At what point does negligence cease and bad faith begin? The distinction between them is that bad faith, or dishonesty, is, unlike negligence, wilful. The mere failure to make inquiry, even though there be suspicious circumstances, does not constitute bad faith, unless said failure is due to the
1060:
Those categories of mistake in the United States exist as well, but it is often necessary to identify whether the error was a "decisional mistake", which is a mistake as a matter of law (faced with two known choices, making the wrong one), or an "ignorant mistake", unaware of the true state of
973:(emphasis added). When there is a material mistake about a material aspect of the contract, the essential purpose of the contract, there is the question of the assumption of the risk. This risk may be determined contractually or according to custom. In American law, the
1079:
law a bank, title company, document processing firm, or the like is not liable for false information provided to it, any more than a bank was liable for false information from a trusted customer turned embezzler who drew an unauthorized cashier's check:
850:
The law of mistake in any given contract is governed by the law governing the contract. The law from country to country can differ significantly. For instance, contracts entered into under a relevant mistake have not been voidable in
English law since
873:
Mistake of law is when a party enters into a contract, without the knowledge of the law in the country, the contract is affected by such mistakes, but it is not void. The reason here is that ignorance of law is not an excuse. However, if a party is
1212:, in reviewing the tariff application to the facts, also provided a guided tour of the different kinds of mistake and how they are treated in the federal court system. The key distinction is between "decisional mistakes" and "ignorant mistakes".
942:
be seen by an objective standard, or if a reasonable person would be able to know that the mistake would not make sense to one of the parties. Unless one of the parties 'snatched up' the one-sided offer, courts will otherwise uphold the contract.
1237:, 2004 C.I.T. (Sept. 8, 2004) (" mistake of fact ... is a factual error that, if the correct fact had been known, would have resulted in a different classification.") The error must be "material" in order to be corrected without consequence.
1119:, which on similar facts to Roswell came to the same conclusion and exonerated the innocent actor in favor of shifting any responsibility for the loss to tortfeasors and those who enabled them to act by giving them unjustified authority.
1023:
established that common mistake can void a contract only if the mistake of the subject matter was sufficiently fundamental to render its identity different from what was contracted, making the performance of the contract impossible.
968:
mistakes will not afford the right of rescission. A collateral mistake is one that "does not go to the heart" of the contract. For a mutual mistake to render a contract void, then the item the parties are mistaken about must be
895:
For example, a woman finds a stone and sells it as a topaz. It was a raw uncut diamond worth hundreds of times the selling price. The contract is not voidable. There was no mistake because neither party knew what the stone was.
370:
1135:
deliberate desire to evade knowledge because of a belief or fear that inquiry would disclose a vice or defect in the transaction, – that is to say, where there is an intentional closing of the eyes or stopping of the ears.
1154:
that money received by mistake does not have to be returned if there is an irrevocable change in position. It held that mistakes do not need to be rectified except by court order or indemnities being issued.
375:
1037:
1035:
added requirements for common mistake in equity, which loosened the requirements to show common mistake. However, since that time, the case has been heavily criticized in cases such as
853:
899:
Conversely, in a case where a person sells a cow for $ 80 because they think it is infertile and the cow turns out to be pregnant and worth $ 1000, the contract would be void.
881:
For example, Harjoth and Danny make a contract grounded on the erroneous belief that a particular debt is barred by the Indian law of
Limitation; the contract is not voidable.
998:, but each party was referring to a different vessel. Therefore, each party had a different understanding that they did not communicate about when the goods would be shipped.
1194:
court explains the difference between a mistake of law "where the facts are known, but the legal consequences are not, or are believed to be different than they really are" (
1198:, 205 F.3d 1308, 1313 (Fed. Cir. 2000)), and a mistake of fact, "where either (1) the facts exist, but are unknown, or (2) the facts do not exist as they are believed to " (
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Another breakdown in contract law divides mistakes into four traditional categories: unilateral mistake, mutual mistake, mistranscription, and misunderstanding.
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A mistake of fact is when both parties enter into agreement 8under a mistake as to a matter of fact essential to the agreement, the agreement is voidable.
748:
3 Historically restricted in common law jurisdictions but generally accepted elsewhere; availability varies between contemporary common law jurisdictions
892:
An erroneous opinion as to the value of the thing which forms the subject matter of the agreement is not to be deemed a mistake as to a matter of fact.
964:
fact within their contract. They are at cross purposes. There is a meeting of the minds, but the parties are mistaken. Hence the contract is voidable.
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One party relied on a statement of the other about a material fact that the second party knew or should have known was mistaken by the first party.
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833:, that certain facts are true. It can be argued as a defense, and if raised successfully, can lead to the agreement in question being found
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A thing is done "in good faith" within the meaning of this act, when it is in fact done honestly, whether it be done negligently or not.
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974:
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required in the formation stage of contract. In
American law, the Restatement (Second) Contracts Sec. 20 deals with this scenario.
1215:‘Decisional mistakes are mistakes of law and occur when "a party the wrong choice between two known, alternative sets of facts".
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taken in good faith in the belief that it was true, or at least without knowledge of the likelihood of falsity or inaccuracy.
1707:
1206:, 66 C.C.P.A. 113, 118, C.A.D. 1231, 603 F.2d 850, 853 (1979): "A mistake of fact is any mistake except a mistake of law.").
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The U.S. Court of
International Trade has gathered the law governing record-keeping mistakes and how they are corrected in
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provided one more criterion, and that is "materiality", citing to extensive development of that requirement in
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1566:(1923, as amended), then §§ 36-101 and 106 (1941), now §§ 46-1-1 (B) and 46-1-5 NMSA (1978).
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1115:, and drew on cases in other jurisdictions interpreting the same language, most notably
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A mutual mistake occurs when the parties to a contract are both mistaken about the same
1426:
Kubasek, Nancy; Browne, M. Neil; Heron, Daniel; Dhooge, Lucien; Barkacs, Linda (2016).
1014:
780:, and Canadian jurisprudence in both Québec and the common law provinces pertaining to
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Ordinarily, unilateral mistake does not make a contract void. Traditionally this is
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A common mistake is where both parties hold the same mistaken belief of the facts.
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to enter into a contract by the mistake of law then such a contract is not valid.
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A contract might be voidable from unilateral mistake for any of the following:
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Great Peace
Shipping Ltd v Tsavliris Salvage (International) Ltd
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case leads into another good analysis, in a case relied upon by
693:
1094:
56 N.M. at 112–113 (quoting from the
Uniform Fiduciaries Act).
1152:
French Bank of
California v. First National Bank of Louisville
1141:
French Bank of
California v. First National Bank of Louisville
683:
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994:, there was an agreement to ship goods on a vessel named
1038:
Great Peace
Shipping Ltd v Tsavliris (International) Ltd
854:
Great Peace
Shipping Ltd v Tsavliris (International) Ltd
773:
both in Québec and in the country's common law provinces
58:
1107:
was the case of first impression on this issue in the
951:", i.e., so serious and unreasonable to be outrageous.
776:
7 Specific to civil law jurisdictions, the American
865:Mistake can be mistake of law, or mistake of fact.
1648:Hynix Semiconductor America, Inc. v. United States
1636:Hynix Semiconductor America, Inc. v. United States
1624:Hynix Semiconductor America, Inc. v. United States
1612:Hynix Semiconductor America, Inc. v. United States
1184:Hynix Semiconductor America, Inc. v. United States
1177:Hynix Semiconductor America, Inc. v. United States
590:Contract A and Contract B in Canadian contract law
1588:Roswell State Bank v. Lawrence Walker Cotton Co.
1552:Roswell State Bank v. Lawrence Walker Cotton Co.
1352:
1070:Roswell State Bank v. Lawrence Walker Cotton Co.
1132:
1082:
745:2 Specific to civil and mixed law jurisdictions
1600:Union Bank & Trust Co. v. Girard Trust Co.
1160:Union Bank & Trust Co. v. Girard Trust Co.
956:Mutual mistake versus failure of mutual assent
1684:Universal Cooperatives, Inc. v. United States
915:(let the buyer beware), and under common law
802:
43:The examples and perspective in this article
8:
1532:Australian Estates P/L v Cairns City Council
1602:, 307 Pa. 468, 500–501, 161 A.2d 865 (1932)
1329:Kleinwort Benson Ltd v Lincoln City Council
1233:, 87 F.3d 1301, 1304 (Fed. Cir. 1996), and
782:contractual and pre-contractual negotiation
1432:(3rd ed.). McGraw-Hill. p. 227.
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795:
96:
1421:
1419:
1417:
1415:
1342:McRae v Commonwealth Disposals Commission
85:Learn how and when to remove this message
1252:Vitiating factors in the law of contract
1196:Century Importers, Inc. v. United States
1055:Australian Estates v Cairns City Council
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934:"clerical error that did not result in
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1271:Eisenberg, Melvin A. (December 2003).
578:Duty of honest contractual performance
1576:Davis v. Pennsylvania Co. 337 Pa. 456
1117:Davis v. Pennsylvania Co. 337 Pa. 456
1099:Davis v. Pennsylvania Co. 337 Pa. 456
766:of International Commercial Contracts
7:
1650:, 414 F. Supp. 2d 1326 (C.I.T. 2006)
1626:, 414 F. Supp. 2d 1319 (C.I.T. 2006)
1614:, 414 F. Supp. 2d 1317 (C.I.T. 2006)
1429:Dynamic Business Law: The Essentials
1231:Degussa Canada Ltd. v. United States
1202:, 414 F. Supp. 2d. at 1325, quoting
1674:, 140 F. Supp. 2d 1370, 1378 (2001)
1662:, 281 F. Supp. 2d 1323, 1331 (2003)
1638:, 414 F. Supp. 2d 855 (C.I.T. 2006)
1204:Hambro Auto. Corp. v. United States
977:Sec. 154 deals with this scenario.
755:and other civil codes based on the
1590:, 56 N.M. 107, 240 P.2d 114 (1952)
1554:, 56 N.M. 107, 240 P.2d 143 (1952)
25:
975:Restatement (Second) of Contracts
1686:, 715 F. Supp. 1113, 1114 (1989)
1041:. For Australian application of
580:(or doctrine of abuse of rights)
395:Enforcement of foreign judgments
359:Hague Choice of Court Convention
107:
34:
1247:Mistake in English contract law
1731:Legal doctrines and principles
1708:New International Encyclopedia
388:Singapore Mediation Convention
1:
1660:G & R Produce Co, v. U.S.
1167:Union Bank & Trust Co.v.
980:This is easily confused with
762:5 Explicitly rejected by the
529:Quasi-contractual obligations
1309:[2002] EWCA Civ 1407
1235:Xerox Corp. v. United States
61:, discuss the issue on the
1752:
1020:Bell v Lever Brothers Ltd.
400:Hague Judgments Convention
47:the English-speaking world
1468:Bell v Lever Brothers Ltd
1456:(1864) 2 Hurl & C 906
1273:"Mistake in Contract Law"
919:(let the seller beware).
751:4 Specific to the German
829:is an erroneous belief,
456:Anticipatory repudiation
206:unequal bargaining power
1564:Uniform Fiduciaries Act
1053:. For Queensland, see
778:Uniform Commercial Code
753:Bürgerliches Gesetzbuch
438:Third-party beneficiary
410:Rights of third parties
288:Accord and satisfaction
49:and do not represent a
27:Concept in contract law
1672:Prosegur, Inc. v. U.S.
1536:[2005] QCA 328
1217:Universal Cooperatives
1137:
1092:
509:Liquidated, stipulated
354:Forum selection clause
239:Frustration of purpose
1542:(Qld, Australia).
1512:[1956] HCA 55
1472:[1931] UKHL 2
1347:[1951] HCA 79
1277:California Law Review
771:Canadian contract law
139:Abstraction principle
1453:Raffles v Wichelhaus
1399:[1983] HCA 5
1319:(England and Wales).
1043:Great Peace Shipping
987:Raffles v Wichelhaus
600:Related areas of law
499:Specific performance
349:Choice of law clause
314:Contract of adhesion
228:Culpa in contrahendo
134:Meeting of the minds
129:Offer and acceptance
67:create a new article
59:improve this article
45:deal primarily with
1578:, 12 A.2d 66 (1940)
1508:Svanosio v McNamara
1458:Court of Exchequer.
1051:Svanosio v McNamara
903:Unilateral mistakes
764:UNIDROIT Principles
538:Promissory estoppel
418:Privity of contract
371:New York Convention
331:UNIDROIT Principles
174:Collateral contract
169:Implication-in-fact
154:Invitation to treat
1383:Sherwood v. Walker
584:Duty of good faith
481:Fundamental breach
447:Breach of contract
376:UNCITRAL Model Law
340:Dispute resolution
325:Contra proferentem
319:Integration clause
293:Exculpatory clause
18:Unilateral mistake
1150:, it was held in
947:The mistake was "
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818:
662:England and Wales
570:Duties of parties
561:Negotiorum gestio
550:Unjust enrichment
271:Statute of frauds
220:Unconscionability
192:Misrepresentation
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283:Unclean hands
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234:Force majeure
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164:Consideration
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78:
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1726:Contract law
1706:
1683:
1679:
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1647:
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1623:
1619:
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1595:
1587:
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1547:
1531:
1527:
1522:(Australia).
1514:, (1956) 96
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1491:
1487:
1467:
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1452:
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1409:(Australia).
1394:
1390:
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1361:(Australia).
1340:
1336:
1328:
1324:
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1280:
1276:
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1234:
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820:
717:Criminal law
699:Property law
654:Saudi Arabia
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144:Posting rule
101:Contract law
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1736:Legal error
555:Restitution
366:Arbitration
1720:Categories
1520:High Court
1407:High Court
1359:High Court
1351:(1951) 84
1331:3 WLR 1095
1287:18 January
1113:New Mexico
1077:New Mexico
1047:Queensland
966:Collateral
923:Exceptions
757:pandectist
740:common law
520:Rescission
428:Delegation
423:Assignment
211:Illegality
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1061:affairs.
1027:Later in
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837:ab initio
759:tradition
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116:Formation
75:June 2015
63:talk page
1241:See also
1148:Kentucky
1017:case of
996:Peerless
971:material
962:material
861:Examples
857:(2002).
842:voidable
722:Evidence
694:Tort law
667:Scotland
490:Remedies
433:Novation
256:Hardship
183:Defences
124:Capacity
57:You may
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992:Raffles
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202:Threats
197:Mistake
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1258:Notes
1227:Hynix
1221:Hynix
1210:Hynix
1200:Hynix
1192:Hynix
1128:Davis
1124:Davis
1109:state
990:. In
835:void
730:Notes
704:Wills
686:areas
649:India
511:, or
461:Cover
65:, or
1498:671.
1434:ISBN
1373:(WI)
1289:2016
1190:The
1122:The
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1013:The
825:, a
213:and
204:and
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