Essay: Credibility of the contract in contract law
During contract formation, it is vital to ensure that the contract is concrete in that its credibility cannot be challenged. Without the necessary elements of a contract, it is likely to be considered void by the law. In contract law mistakes and misrepresentations are capable of voiding a contract. Mistakes amount to beliefs that are not in accordance with the facts stipulated under the contract.
Mutual mistakes apply to when both the business manager and the consumer are working under false misconceptions while a unilateral mistake implies that both parties are influenced by independent opinions. A unilateral mistake occurs when one of the parties fails to acquire the expected knowledge for the execution of the contract even when this knowledge is available to them. A manager should grasp the implications of such contract misdemeanors and either chose to nullify the contract and seek compensation. This can be so, especially if the mutual mistake caused the decline or loss of consumer sales. Then the manager must put in measures to recover these losses. Where the consumer is responsible for the mistake, they are expected to take responsibility over it and accept the repercussions.