What type of mistake makes a contract void?

A mutual mistake about the subject matter renders a contract void because it indicates that both parties have an incorrect belief about a fundamental aspect of the agreement. In contract law, both parties must share a mutual understanding regarding the key elements of the contract for it to be enforceable. When there is a mutual mistake that affects the subject matter, such as both parties believing that a specific item exists when it does not or that it has certain attributes when it does not, neither party can be held to the terms of the contract. This mutual misunderstanding undermines the essence of the agreement, leading to the conclusion that the contract is void from the beginning.

In contrast, a minor mistake regarding terms typically does not invalidate a contract, as it can often be resolved without affecting the overall agreement. An error in drafting the contract may also be corrected through modifications or reformation rather than voiding the entire agreement. Additionally, a mistake regarding the identity of the parties can lead to issues, but it does not always make the contract void unless the identity is essential to the agreement.