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Bilateral Mistake
A legal term referring to a misunderstanding where both parties to a contract have incorrect beliefs about an essential fact of the agreement.
Unilateral Mistake
Mistake as to a material fact on the part of only one party to a contract. In this situation, the contract is normally enforceable against the mistaken party, with some exceptions.
Rescission
A remedy in which the contract is canceled and the parties are returned to the positions they occupied before the contract was made.
Contract
A legally binding agreement between two or more parties that outlines duties, obligations, and conditions that are enforceable by law.
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