For a mistake to make a contract voidable, it must qualify as what type of mistake?

For a mistake to make a contract voidable, it must qualify as a mutual mistake of material fact. This type of mistake occurs when both parties involved in the contract are mistaken about a fundamental fact that is crucial to the agreement. When a mutual mistake of material fact exists, it can significantly affect the outcomes anticipated by the parties, potentially leading to unfair circumstances for one party.

In contrast, a unilateral mistake, where only one party is mistaken about a fact, typically does not render a contract voidable unless the other party knew or should have known about the mistake or if the mistaken party would suffer undue hardship. A mutual mistake of value, while it may impact the perception or desirability of the contract, does not concern a material fact and therefore does not generally allow either party to void the contract. Overall, the substance of the mutual mistake of material fact is what gives the affected party the right to seek to void the contract.