Error

When parties enter into a contract with each other, it is established by offer and acceptance. The offer and acceptance are expressed because there is a certain representation. You see a Porsche, assume it is in good condition, and you make an offer of €100,000. The seller accepts the offer, after which a purchase agreement is established. But what if that representation was incorrect? In that case it is a case of error. A mistake is a lack of will: the contracting party would not have concluded the contract under these circumstances if he had had a correct perception of those circumstances. If there is error, the contract is sometimes voidable. But what if the other party demand fulfillment?

Malpractice: what are the requirements? 

A contract is voidable under three circumstances if there is error. First, this is the case if the mistake is the result of a communication from the other party. But if the other party was entitled to believe that the contract would have been concluded even without his communication, then again it cannot be voided.

The other possibility is that the other party knew there was an error, and did not inform the other about how the fork did turn out. The last possibility is that both parties have erred and therefore of a misrepresentation of business have assumed. 

What are the causes of error? 

Suppose a seller says a coat is waterproof, but the coat turns out not to be waterproof. The buyer has bought the coat based on a misrepresentation of facts due to the seller's information. The information given creates a legitimate expectation that can be grounds for a claim of mistake. 

The second cause is that the other party should have informed the erring party in connection with what it knew or should have known about the error. Suppose a buyer is looking for a waterproof coat. If the seller is silent about the fact that the coat is not waterproof, there is an error. The same is true if the seller did not know but should have known. The duty of disclosure of seller here outweighs the duty to investigate of the buyer. 

Finally, it is possible that the other party assumed the same incorrect assumption as the errant when concluding the contract. If the seller was convinced that the coat was indeed waterproof, both parties assumed the same incorrect assumption. 

Improper error

Another form of error is misrepresentation. Actual mistake is a defect of will arising from the misrepresentation of facts. In improper mistake, there is no lack of will, but what the parties want does not correspond to what they declare. Suppose someone wants to sell his luxury sloop for €30,000. He receives an offer by phone for €50,000 and immediately agrees. After he delivers, he receives only €15,000 in his bank account. The other party argues that he said €15,000 on the phone and thought that is what they had agreed on. There is clearly a misunderstanding between the two parties and improper mistake. In fact, no agreement then comes into being because the will and statement do not match, unless the other party was justified in trusting that the car was sold for €50,000 or €15,000.

Exceptions 

There are further two general exceptions that prevent a well-founded reliance on mistake. First, the annulment of a contract cannot be based on a mistake concerning an exclusively future circumstance. A reliance on error is also unfounded if the error should be borne by the errant party in connection with the nature of the contract, generally accepted practice or the circumstances of the case. These exceptions are often not easy to apply in a concrete case, but they can determine whether you can nullify a contract or not. The contract law attorney at Lexys Lawyers can tell you more about mistake and how it plays out in your situation.