How Do You Spell BILATERAL MISTAKE?

Pronunciation: [ba͡ɪlˈatəɹə͡l mɪstˈe͡ɪk] (IPA)

Bilateral mistake is a common term referring to a situation where both parties in a transaction or agreement make an error or oversight. The pronunciation of this term is [baɪˈlætərəl mɪˈsteɪk], with the stress falling on the first syllable. The word "bilateral" is pronounced as "bye-LAT-er-uhl" in IPA, whereas "mistake" is pronounced as "mi-STAYK". Both words have stress on the second syllable. This term can occur in various fields, including law, finance, and international relations.

BILATERAL MISTAKE Meaning and Definition

1. A bilateral mistake refers to an error or misunderstanding that occurs between two parties involved in a contract or agreement. It is a mutual mistake made by both parties, where each of them holds an incorrect understanding of a crucial aspect of the contract, resulting in a lack of consensus or failure to achieve the intended purpose.

   In a bilateral mistake, both parties share the same misconception or erroneous belief, leading to an agreement that is fundamentally flawed or ineffective. This mistake could involve a misunderstanding of the subject matter, terms, conditions, or provisions of the contract, leading to a situation where the parties are not actually agreeing on the same essential elements.

   When a bilateral mistake occurs, it can typically serve as grounds for rescinding or avoiding the contract. As both parties were equally mistaken, it is considered unjust to enforce an agreement that does not truly reflect their intentions or understanding. Courts may rule that the contract is voidable, allowing either or both parties to be released from their obligations or to renegotiate the terms to rectify the misunderstanding.

   However, for a bilateral mistake to warrant the avoidance of a contract, it must be fundamental, material, and go to the root of the agreement. Trivial or insignificant mistakes are generally not sufficient to render a contract voidable. Additionally, if one party is aware of the mistake made by the other party and takes advantage of it, the courts may not grant relief from the contract, as the party may be deemed to have acted in bad faith.

Etymology of BILATERAL MISTAKE

The word "bilateral" comes from the Latin word bilaterālis, which is a combination of bi- (meaning "two") and latus (meaning "side"). It originally referred to something that was related or performed on both sides.

The word "mistake" has its roots in the Old Norse word mistaka, which means "to take wrongly" or "to misunderstand".

When these two words are combined, "bilateral mistake" refers to an error or mistake made by both parties or on both sides of a situation or agreement.