Common Mistake

Business, Legal & Accounting Glossary

Definition: Common Mistake




Full Definition of Common Mistake


A common mistake occurs when a contract is formed and appears valid, and yet the situation that obtains in the real world makes the contract meaningless. For example, if two people enter into an agreement to transport goods using a particular ship, and the ship had sunk before the contract was settled, then the contract is meaningless. In this case, no party is in breach of contract, even if one of them was the owner of the ship. This should be contrasted with Agreement mistake, in which the parties have no real ‘meeting of minds’


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Definition Sources


Definitions for Common 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 | 7 Views.