The three types of errors recognized by law are: Illustration: Lady found a stone and sold it as topaz for 1 dollar (25 dollars today). It was an uncut rough diamond valued at $700 ($17,000 today). The contract is not cancelled. There was no error because neither party knew what the stone was.  In addition, unilateral errors often include prices, quantities, data and errors regarding the description of goods or services included in the contract. Depending on the nature of the error, a contract can be: error of law: if a party enters into a contract, without knowing the law in the country, the contract is affected by such errors, but it is not null. The reason is that ignorance of the law is no excuse. However, when a party is brought to enter into a contract by an error of law, such a contract is not valid.  In this case, the party concerned can have the contract reformed. In other words, the victim can have the contract amended by the court, so that it accurately reflects the oral agreement. See Goode v. Riley, 28 N.E. 228 (Mass.
1891). Error of fact. This is a different false faith than an error of law. For example, false beliefs about the meaning of a term or identity of a person or place. There are two types of errors of fact: “Mistakes in decision are errors of law and occur when” … a party [makes] the wrong choice between two known and alternative facts. Universal Cooperatives, (quote partially omitted), 715 F. Supp. at 1114. On the other hand, there is an ignorant error where “…
a party is not aware of the existence of appropriate alternative facts. Id. “For the goods to be liquidated below 1520 C) (1), the alleged error of fact must be an ignorant error. Prosegur, (quote partially omitted), 140 F. Supp. 2d to 1378.` Hynix to 1326. Note that it is important to determine whether the non-crazy party knows that the other party does not include a term in the contract. If the non-false party knows or must know that the other party has made a unilateral error, the result is usually the termination of the contract (cancellation). On the other hand, if the other party was not aware of the error, the contract can be reformed (rewritten). If the risk was assigned in the written version of the agreement, the teaching of error has no room for manoeuvre. The risk can be recorded in (the incorrect version of the contract) in the form of an express clause, implied clause, previous condition, condition below, when it indicates who bears the risk of the relevant error. At Raffles, there was an agreement to ship goods on a ship called Peerless, but each party referred to another ship. As a result, each party had a different understanding of the fact that it did not communicate when the goods were to be shipped.
Thus, if the unrigated party knew that the other party had made a unilateral error, then the result is usually the termination of the contract (cancellation).