Question

Which of the following conditions is not essential in the context of 'Bilateral Mistake'?

• A. It must be mutual or common
• B. It must relate to some law essential to the agreement
• C. It must relate to some fact essential to the agreement
• D. It must relate to the formation of an agreement

Answer 1

The correct option is B It must relate to some law essential to the agreement

A bilateral mistake example includes instances when both parties to a contract are mistaken or misinformed as to the specific terms. Bilateral mistakes, in comparison to unilateral mistakes, involve both parties of the contract. A unilateral mistake involves just one party to the contract acting under false misconceptions. It is necessary that a bilateral mistake must relate to some law essential to the agreement.