mistake of fact

mistake of fact
An active mistake, consisting in the belief of existence of a matter or thing which is nonexistent, or vice-versa, or a passive mistake, consisting of unconsciousness, ignorance, or forgetfulness of a fact material to the transaction. Kowalke v Milwaukee Electric R. & Light Co. 103 Wis 472, 79 NW 762. A ground for cancellation of an instrument whether the instrument relates to an executory agreement or to one that has been executed, providing it affects the substance of the contract and is not a mere incident of the agreement. Steinmeyer v Schroeptel, 226 Ill 9, 80 NE 564. As ground for relief in equity by reformation of instrument:–(1) an unconscious ignorance or forgetfulness of a fact past or present and material to the contract; or (2) a belief in the present existence of a thing material to the contract which does not exist, or in the past existence of such a thing which has not existed. 45 Am J1st Reform Inst § 47. In the making of a payment:–a mistaken belief that the money was due the payee, when in truth it was neither legally nor morally due. 40 Am J1st Paym § 189.

Ballentine's law dictionary. . 1998.

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