Utah Affirmative Defense: Mistake

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Mutual Mistake

Elements to be proved by clear and convincing evidence:

  1. that at the time the contract was entered into both parties were mistaken about these facts, and
  2. that these facts were a basic assumption or an important fact upon which they based their bargain.

References:

England v. Horbach, 944 P.2d 340 (Utah 1997).

Despain v. Despain, 855 P.2d 254 (Utah Ct. App. 1993).

Robert Langston Ltd. v. McQuarrie, 741 P.2d 554 (Utah Ct. App. 1987).

Restatement (Second) of Contracts §§ 151, 152 (1979).


Unilateral Mistake

Elements to be proved by clear and convincing evidence:

  1. a party was mistaken about a particular matter;
  2. the mistake has such serious consequences that to enforce the contract would be unconscionable;
  3. the matter about which the mistake was made related to a material feature of the contract;
  4. the mistake occurred even though the party made a reasonable effort to understand the circumstances about which he was mistaken; and
  5. the other party can be put back in the same position he was in before the contract, losing only the benefit of the bargain.

References:

Guardian State Bank v. Stangl, 778 P.2d 1, 4-5 (Utah 1989).

Equitable Life & Casualty Insurance Co., 849 P.2d 1187 (Utah Ct. App. 1993).

Klas v. Van Wagoner, 829 P.2d 135 (Utah Ct. App. 1992).