Agreement Mistake

Business, Legal & Accounting Glossary

Definition: Agreement Mistake

Agreement Mistake

Full Definition of Agreement Mistake

This kind of mistake in contract occurs where there is no real “meeting of minds” between the contracting parties, and the contract is therefore void or voidable. This may arise because the parties are at cross purposes, or the contract is too vague to be interpreted. There are three important metas of agreement mistake:

  • mistake as to the terms of the contract; for example, one party may read the terms of the offer as implying something different to what is really being offered;
  • mistake as to subject matter; this usually means that the terms are too imprecise to evidence any meeting of minds;
  • mistake as to person; this is the only common case. Here one of the parties is mistaken about the identity of the other.

It can be a job for the court to decide whether there really is an agreement mistake, which may void the contract, or one party has merely made an error of judgement and the contract is sound.

In mistake as to person, it is common for one party to make a mistake about the identity of a fraudster. Particular problems arise when a person buys goods, for example, from a fraudster and then sells them (innocently) to someone else. In general, in a true mistake as to identify the contract is void.

Cite Term

To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
Modern Language Association (MLA):
Agreement Mistake. Payroll & Accounting Heaven Ltd.
January 18, 2022
Chicago Manual of Style (CMS):
Agreement Mistake. Payroll & Accounting Heaven Ltd. (accessed: January 18, 2022).
American Psychological Association (APA):
Agreement Mistake. Retrieved January 18, 2022
, from website:

Definition Sources

Definitions for Agreement Mistake are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 4th April, 2020 | 35 Views.