What Does Bilateral Mistake Mean

When parties to a contract enter into it believing that it is capable of performance while in fact it is not so there is a mistake of facts as to the possibility of performance.

What does bilateral mistake mean. Bilateral mistake as to the possibility of performance. A bilateral mistake voids a contract under most circumstances. An error on the part of both parties of a transaction regarding the same matter such as if two people sign a contract under a certain understanding while the contract actually conveys a different meaning than they each may have expected. A bilateral mistake is often known as a mutual legal mistake.

Bilateral mistake a situation in which both parties to a contract misunderstand or misinterpret the terms of an item in the contract. And the contract is void on this ground i e impossibility. It occurs when both parties are falsely operating on information that is inaccurate. A bilateral mistake is defined as an error that involves both parties of the contract having an understanding that is not what the contract terms actually state.

Bilateral mistakes can be problematic because both parties have a misunderstanding of the contract and its terms. Bilateral mistake a situation in which both parties to a contract misunderstand or misinterpret the terms of an item in the contract.