mistake legal definition

In contract law, a factual misunderstanding that may lead to a failure of a meeting of the minds.

Improper understanding of a fact that is material to a contract.

Improper understanding of the law as applied to facts as to which a party has a correct and full understanding.

A mistake in which each party has an incorrect understanding of the otherÂ’s position, or in which both parties share the same mistaken belief, generally a basis for canceling the contract.

A mistake by only one party to a contract as to the underlying facts of the agreement, not generally a basis for avoiding the contract.