INDUCED UNILATERAL MISTAKE Sample Clauses

INDUCED UNILATERAL MISTAKE.  The contract is voidable if one party has encouraged or induced the other to make the mistake.  Example: you are looking at a tray of diamonds and you choose the only stone on the tray that was a zirconium and offered a high price for it. The mistake would have been encouraged by the mixing of the zirconium with many real diamonds. The contract would be voidable. WHAT ARE MUTUAL MISTAKES?  mutual mistake (or bilateral mistake)is when both parties are wrong about some important facts.  material factsimportant facts that influence the parties’ decisions about a contract.  If a mutual mistake occurs, the contract is void.  Example: If both the buyer and the seller think that the property is 41 acres and they contract for the sale based on this belief, then learn later that it is only 28 acres. Their agreement is not binding.  Example: buying a parcel of land on 000 Xxxxxx Xxxxxx and the other person thought you meant 000 Xxxxxx Xxxx {both the avenue and the road exist}