BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -If any unilateral mistake is induced by fraud or misrepresentation, then the contract is voidable for that party who has done the mistake in the contract.

Detailed explanation-2: -A unilateral mistake is when only one party to the contract is under a mistake. In such a case the contract will not be void. So the Section 22 of the Act states that just because one party was under a mistake of fact the contract will not be void or voidable.

Detailed explanation-3: -Unilateral Mistake of Law If only one party is mistaken, the mistake is a “unilateral mistake” of law. One may rescind for a unilateral mistake of law only if the other party knows of, but does not correct, and takes advantage of or unfairly obtain the benefit of the rescinding party’s mistake of law.

Detailed explanation-4: -Unilateral mistake (where one party is mistaken and the other knows or ought to have known of the mistake). If the mistake relates to the fundamental nature of the offer the contract can be voided.

Detailed explanation-5: -Will a unilateral mistake always provide grounds for rescission of a contract? No, unilateral mistakes will provide grounds for rescission of a contract when the mistake involves the identity of a party or the identity or existence of the subject matter of the contract of.