The terms of the contract are correct then you will need to look fully at the terms and

conditions concerning cancellation and termination of the contract.

If the contract that you have entered into contains a mistake then it may affect the validity
of the contract. What will happen concerning the validity of a contract will depend on the
nature and the kind of mistake made but in most cases this will result in the contract being
void.

Mistake
Mistake in contract can be broken down to into the following four categories:
1. Common Mistakes
2. Unilateral Mistakes
3. Mutual Mistakes
4. Mistakes relating to Identity

Common Mistakes
In the situation of a common mistake the parties are in agreement with each other but have
entered into the contract upon the same misapprehension, i.e. they have both relied on the
mistake when entering into the contract. In the case of a common mistake which goes right
to the root of the contract this will result in the contract being void as the mistake was
fundamental to the contract.
The following common mistakes will cause the contract to become void:

Mistake in relation to the existence of the subject matter where the subject matter
of the contract does not exist of ceases to exist the contract will be void at common
law

Mistake in relation to the title in the case where the contract is to transfer property
from one person to another but the second person in fact already owns the property
but neither party was aware of this the contract will be void at common law

Mistake in relation to the performing of the contract if the obligations specified

within a contract are in fact impossible to perform then the contract will be void at
common law

What is the case concerning a mistake in relation to the quality of the subject
matter of a contract?

If the mistake is in relation to the quality of the subject matter of the contract then the
contract will still be valid at common law. An example of this is a contract between two
people for the sale of a painting where both parties believed the painting to be painted by a
particular artist. The fact that there was a mistake in relation to the artist would not make
the contract void at common law.
The only way a contract will be void due to a mistake in relation to the quality of the subject
matter if the quality of the goods was fundamental to the contract.

Unilateral Mistakes

A unilateral mistake is where one party is mistaken while the other party is aware of
this mistake and takes advantage of it when forming the contract. A unilateral
mistake of this manner will eliminate the consent required for the proper formation
of a contract meaning that there is no contract in existence.

In order for a contract to be void due to a unilateral mistake the mistake must relate
to the terms and conditions of the contract. A unilateral mistake in relation to the
quality of the subject matter of a contract will not result in the contract being void.

It is not enough for one party simply to be mistaken in relation to the terms and
conditions of a contract. For the contract to be void due to the unilateral mistake the
other party must have been aware of this mistake and then used it to their
advantage in forming the contract.

Mutual Mistakes

A mutual mistake is a misunderstanding between the parties entering into a contract

as to the intentions of the other party. A mutual mistake between the parties will
eliminate the consent required for the proper formation of a contract meaning that
there is no contract in existence.

Where there is problems understanding what the agreement actually relates to an

objective test will be applies asking the question what a reasonable third party would
take the contract to mean.

If the mutual mistake relates to the identity of the subject matter the contract will be
held to be void. If the mutual mistake relates to the quality of the subject matter
the contract is unlikely to be held to be void.

Mistakes relating to Identity

A contract will become void at common law where a mistake was made in relation to
the identity of the other party with whom the contract is made and that the identity
of that person is central to the formation of the contract.

This is difficult to prove as a lot of the time when forming a contract the parties will
meet in person. When this is the case there is a presumption that you have intended
to do business with the person in their presence making it very difficult for the
contract to be deemed void.