If, however, the difference in the subject matter of the contract concerned some incidental quality that has no (or negligible) effect on the value of the contract, the contract is binding, even though the mistake altered or removed what had been the incentive to one or both parties to enter the contract.Unilateral Mistake Ordinarily, a unilateral mistake (i.e., an error made by one party) affords no basis for avoiding a contract, but a contract that contains a typographical error may be corrected.A contract may be avoided if the error in value in what is to be exchanged is substantial, or if the mistake is caused by or known to the other party.
Where such a bid is accepted, the contractor will be permitted to avoid the contract only if the agreement has not been executed or if the other party can be placed in the position that they occupied prior to the contract.
If the mistake is obvious, the contract will not be enforced, but if it is inconsequential, the contract will be upheld.
The mistake must consist of a clerical error or a mistake in computation, as an error in judgment will not permit a contractor to avoid a contract.
The parties must mutually assent to the proposed objectives and terms of a contract in order for it to be enforceable.
The manifestation of the common intent of the parties is discerned from their conduct or verbal exchanges.
What one party secretly intended is irrelevant if his or her conduct appears to demonstrate agreement.In a few limited cases, however, where there is no stated expression of the parties' intent, their subjective intentions may establish an enforceable contract if both believe in the same terms of the contract.There will be no binding contract without the real consent of the parties.Apparent consent may be vitiated because of mistake, fraud, innocent misrepresentation, duress, or undue influence, all of which are defenses to the enforcement of the contract.Mutual Mistake When there is a mutual with respect to the subject of the contract, the subjective intention of the parties is evaluated by the courts to determine whether there had been, in fact, a meeting of the minds of the parties.If the mutual mistake significantly changed the subject matter of the contract, a court will refuse to enforce the contract.