Common Mistakes in Legal Documents

Posted by Groshan Fabiola
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The mistake need not relate to an essential term or substance of the contract, and can give a court grounds for relief where it considers it fair, just, and conscionable to correct it.   With that being the case, it is important to have a document carefully drafted and reviewed before it is signed, since any error can have serious consequences in different circumstances. In the best of circumstances, where there has been a mistake that is obvious or inadvertent, the contract may be void.  However, depending on the facts, it is possible that much more serious consequences could be inferred by the court.  For example, a court may determine that the contract actually amounted to fraud or the equivalent of fraud (i.e. transactions falling short of deceit but where the court is of the opinion that it is unconscientious for a person to take advantage of the contract). 


There are three main types of mistakes which are frequently encountered, and a professional lawyer will help you avoid though document review.  First, there are the common mistakes. These characterize a situation in which both parties agree on the terms of the contract, but share the same misconception, which made them enter into the contract in the first place. As a result, the contract is not legally binding and can be cancelled, because there is no agreement on the terms. This type of mistake most commonly arises with respect to title, to the existence of the subject matter, or to the performing of the contract (for example, if the specifications are impossible to perform). Second, there are unilateral mistakes which concern only one party, but the other party knows of the problem and takes advantage of it. This will traditionally result in the agreement being cancelled.  The third type is mutual mistake. This happens when both parties hold the same mistaken belief of the facts.  Common mistake can void a contract if the mistake of the subject-matter was sufficiently fundamental to render its identity different from what was contracted, making the performance of the contract impossible.

 

Any of these errors can influence and delay the contract or result in negative consequences.  It is therefore very important that you have your legal documents review by a professional lawyer or law firm that has expertise in this area of law.  Having such documents reviewed is helpful to all of the parties and ensures that everyone understands and agrees on the terms and conditions, and gets what they are expecting.  There are many such lawyers and practices available to you in Ontario, and we strongly recommend that you seek legal advice that meets your budget and timeframe.

 

For more information about document review or to read more about legal document review, please click on these links.