Simple English definitions for legal terms
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An error of fact is when someone believes something that is not true. This can happen when people make assumptions without knowing all the facts. In contracts, if both parties have different beliefs about something important, the contract may not be valid. However, if the mistake is not important, it does not affect the contract. If only one person makes a mistake, it is less likely to affect the contract than if both people make the same mistake.
Definition: An error or misconception about a fact that is material to a transaction, which can result in a contract being voidable. It is different from a mistake of law, which is an error about the legal effect of a known fact or situation.
Examples: If a person sells a car and mistakenly believes that it has never been in an accident, but it actually has, this is an error of fact. If a person is charged with a crime but mistakenly believes that their actions were legal, this is a mistake of law.
Explanation: An error of fact occurs when someone has a mistaken belief about a fact that is important to a transaction. This can lead to a contract being voidable, meaning that it can be cancelled or rescinded. For example, if someone buys a car based on the mistaken belief that it has never been in an accident, they may be able to cancel the contract if they later discover that it has. On the other hand, a mistake of law occurs when someone has a mistaken belief about the legal consequences of their actions. This is generally not as effective as a defense as a mistake of fact, but it can still be used in some cases.