Error

Error concerns a discrepancy between a party’s understanding and reality when entering a legal act. Swiss law distinguishes significant errors that may justify avoidance from minor mistakes that leave the contract intact. Relevant errors may relate to the nature of the contract, the subject matter, the counterparty or facts considered a necessary basis of the agreement. A party invoking error must act promptly and may owe compensation if avoidance harms the other party’s justified reliance. Error differs from lack of consensus and from fraud, where deception is involved.