Common Mistake

Business, Legal & Accounting Glossary

Definition: Common Mistake


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’


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
https://payrollheaven.com/define/common-mistake/
Modern Language Association (MLA):
Common Mistake. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
December 08, 2022 https://payrollheaven.com/define/common-mistake/.
Chicago Manual of Style (CMS):
Common Mistake. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
https://payrollheaven.com/define/common-mistake/ (accessed: December 08, 2022).
American Psychological Association (APA):
Common Mistake. PayrollHeaven.com. Retrieved December 08, 2022
, from PayrollHeaven.com website: https://payrollheaven.com/define/common-mistake/

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 | 0 Views.