Bar Exam Tip: Contract Mistake

My mistake or yours???

A mistake is either unilateral or mutual. A mutual mistake will usually prevent the formation of a contract, but a unilateral mistake will not unless the party not making the mistake knew or reasonably should have known that a mistake was made.

A clerical mistake, like a much lower price being inserted, will still be upheld unless the party not making the mistake knew or had reason to know that the bid was ridiculously low.