Mistakes in Contracts: What is there to Know?

contract law, minneapolis law firm“Mistakes happen.” You have likely heard this as a kid after knocking over a flower vase or as a teenage driver after backing into the garage door. The truth is that mistakes continue to happen into adulthood and, despite our best efforts, do occur in the workplace.

As a reputable Minneapolis law firm, our lawyers take every precaution to ensure no mistakes. However, it’s easy for business owners unfamiliar with contract law to find themselves making mistakes in the contracts which they create and approve. Below are the different types of mistakes commonly found in business contracts:

 

Common Mistake: A common mistake occurs when both parties are in agreement but enter into a contract under the same misunderstanding. Common mistakes often occur when terms are discussed but not explicitly included in the contract. If contested, the contract would be void under a common mistake.

Unilateral Mistake: This occurs when one party is mistaken about the substance of the contract while the other party takes advantage of this misunderstanding. In order for the contract to be considered void, the mistake must be in regards to the contract’s terms and conditions and one party must have been aware of this and used it to their advantage.

Mutual Mistakes: A mutual mistake occurs when both parties misunderstand the intentions of the other party. In these cases, the contract is most likely to be considered void.

 

How to Avoid Contract Mistakes

Avoiding mistakes in your business contracts starts by ensuring that you fully understand the agreement you are making. Unfortunately this is easier said than done as contracts can contain pages of confusing legalese and esoteric stipulations. The most effective way to ensure you’re entering into sound contracts is to receive guidance from a reputable business lawyer with a good amount of experience in contract law.

The Minneapolis business lawyers at KTF Law have helped Minnesota business owners avoid mistakes in contracts for many years. We take pride in helping business owners understand and create contracts every day to ensure both parties understand the agreements they are making. Contact our team of business and contract lawyers to learn more about our contract drafting services!