Contractual Mutual Mistakes

Background

Contracts are made when there is a meeting of wills between the buyer and the seller. There are cases where the circumstances under which the contract was made contain one of various types of flaws in this 'meeting of the minds', which are stipulated in the Contracts Law¹ (hereinafter, the "Law"), a flaw which has consequences for the continuation of the contractual relationship between the parties. For example, when a contract is the result of a mistake, deception, coercion, duress and even the illegality of the agreement, the Law allows the parties under certain circumstances to release themselves from it (see sections 14, 15, 17 and 18 of the Law), and even considers it to be void (see sections 13 and 30 of the Law).