A contract established under the influence of a mistake may be set aside. This means that any payments made must be refunded and any goods delivered must be returned. Read below to learn when a mistake may be present. We will also highlight a recent case from our practice involving a mistake.
Cancellation on the Grounds of Mistake of delusion.
Article 6:228 of the Civil Code distinguishes between three cases in which cancellation on the grounds of mistake may be sought.
First, a mistake may exist if a misrepresentation of the facts is attributable to a statement made by the other party, unless the contract would have been concluded even without that statement.
A second case in which a contract may be set aside on the grounds of mistake occurs if the misrepresentation is attributable to the other party’s failure to provide information.
Finally, there may be a case of mutual mistake. Mutual mistake exists if, at the time the contract was concluded, the other party relied on the same incorrect assumption as the party who was mistaken. Because in this case both parties acted on an incorrect understanding of the facts, it must be demonstrated—in order to void the contract—that, had the parties had a correct understanding of the facts, a contract would never have been concluded.
In Practice
Practical experience shows that the legal doctrine of mistake of delusion can be perceived as complex and confusing. Our attorneys have extensive experience with this doctrine. They regularly advise on and prosecute cases involving it, and with success! For example, one of our attorneys represented clients who had not been adequately informed about additional costs after concluding a contract for the installation of an elevator. A claim based on mistake was successful in this case, and the contractor was required to refund the down payment of €2,150.00 to the clients. Click here for more information about this case.
Do you have questions about defects in consent, or would you like to contact one of our specialized corporate law attorneys? Feel free to send an email to info@sijbenpartners.nl or call +31 45 560 22 00.