Unilateral Mistake of Fact

One issue in contract disputes is a legal doctrine called “mistake of fact”.  This issue can affect whether a contract will be deemed valid, void or voidable.  The California Civil Code gives you the definition in Section 1577.

Now what does that mean?  With a “unilateral mistake”, you have to show that one side took advantage of the other side who did not know a fact or believing something was true that was not. The key issue is that the side that knew of the mistake used that knowledge to its advantage.

Thus, since only one party holds a mistaken belief, this could end up giving the other party an unfair advantage in the bargaining power they hold during the contract formation stage. This legal point can be a very potent and powerful defense in a breach of contract case.

Watch the video below where Gregory G. Brown talks about Unilateral Mistake of Fact.



Getting Legal Help

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