An agreement by unilateral mistake is a legal concept that refers to a contract that is entered into by one party due to a misunderstanding or error. Specifically, it occurs when one party is mistaken about a material fact related to the agreement, and the other party is not aware of or does not correct the error. As a result, the agreement is considered voidable and may be rescinded by the party who made the mistake.
To understand this concept more fully, let`s consider an example. Imagine that you are a small business owner looking to hire a freelancer to design a new website for your company. You find a web designer online who seems highly qualified and enter into a contract with her to complete the work within a certain timeframe for a set fee.
However, upon reviewing the work that the designer submits, you realize that there is a major error in the design that makes it unusable for your business purposes. You later discover that the designer misunderstood a key aspect of your company`s needs and made the mistake despite your attempts to clarify it.
In this scenario, the contract between you and the designer could be considered an agreement by unilateral mistake. The mistake was made by the designer (unilaterally) and you were not aware of or did not correct the error. As a result, the contract could be voidable and you may have the option to rescind it.
It is important to note that not all mistakes in a contract will qualify as a unilateral mistake. To be considered as such, the mistake must be a material fact related to the agreement and must be made by one party without the other party`s knowledge or consent. Additionally, the mistake must be such that it would have a significant impact on the agreement if corrected.
In conclusion, an agreement by unilateral mistake is a legal concept that allows for the rescission of a contract when one party has made a material mistake and the other party was not aware of or did not correct it. As a professional, it is important to understand these legal concepts and to be able to communicate them effectively to readers.