Mistakes of law are times when the law is misapplied to a situation. For example, if the writer of a contract misinterprets how the law applies to a specific situation, it is considered a mistake of law. Other mistakes in contract law, including failure to adequately identify all the parties involved, failure to adequately describe the contract’s length and failure to include contract termination procedures are generally considered mistakes of fact and have less egregious effects when a contract is disputed.
Mistakes of identity, common mistakes, mutual mistakes and unilaternal mistakes may not be enough to nullify a contract in and of themselves, unless the mistake changes the provisions of the contract fundamentally. Regardless of their nature, mistakes made in contract law can have an extreme negative impact on all aspects of the contract, but most importantly, when disputes arise because of mistakes made in contract law, the courts have consistently held against those who wrote the contract.
Therefore, it is imperative in writing contracts that mistakes not be made as they will negatively impact the client for which the contract is being written. In order to accurately discuss the impact of mistakes on contractual law, one must first understand the types of mistakes that can be made and their varying degree of importance when contract disputes arise.
Researchers indicate that these types of problem most often arise when the contract is being developed by laymen instead of by professionals (Davis 2007). There are two major types of mistakes that can be made in any legal document. One is devastating to a contract dispute almost always and the other can be.