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Impaired Will: Legal Consequences of the Mistake

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In contract law, while the declaration of intent is fundamental, it is of paramount importance that this declaration is based on a free and sound will. However, in some cases, individuals may declare something they do not actually want or something different from what they intend when entering into a contract. These situations are called defects of will. The most common defect of will is "error" (mistake) .

Error is regulated in Articles 30 and subsequent articles of the Turkish Code of Obligations . This article will examine in detail the effect of error on the validity of a contract, the types of error, its consequences, and how it can be raised.


Definition of the Concept of Error (Mistake)

According to Article 30/1 of the Turkish Code of Obligations:

“If a declaration of intent is made in error and the error is fundamental, the person making the declaration may claim that they are not bound by it.”

An error occurs when a person, while expressing their will, holds a belief that is inconsistent with reality. Even though the person has expressed their will, this will is flawed; that is, it is based on a perception that does not correspond to reality.


The Legal Nature of the Error

Error is a defect of will and one of the circumstances affecting the validity of contracts. For a valid contract to be formed, the parties must act with free will and with accurate information


Conditions of Error

For the error to affect the validity of the contract, the following conditions must be met simultaneously:

  1. The existence of an error: One of the parties must have entered into the contract based on a belief that is contrary to the truth.

  2. The error must be fundamental: The error must relate to the essential elements of the contract.

  3. The other party's lack of good faith or awareness of the error: In some cases, a right to rely on an error arises if the other party is aware of or conscious of the error.


Types of Errors within the Scope of Articles 30-35 of the Turkish Code of Obligations

1. Errors in Declaration (Inconsistency between Declaration of Will and Actual Will)

Errors in reporting occur when a person's statements differ from what they actually mean.

a. Error in Content (Turkish Code of Obligations, Article 30/1)

If a person misunderstands the subject matter, price, or a fundamental element of the contract, this constitutes a legitimate error.

Case Study: Ali buys a painting from an auction house believing it to be original. However, the painting is actually a copy. In this case, Ali's misconception constitutes a "material error," and he can withdraw from the contract.

b. Defect in person or property (Turkish Code of Obligations, Article 30/2)

Mistake regarding the identity or qualifications of the person contracting, or the type of goods that are the subject of the contract.

Example: If Ayşe thinks she made the contract with Mehmet, Ahmet's brother, instead of Ahmet, this is a fundamental mistake on her part.


2. Motivational Errors (Mistake of Intent)

If a person enters into a contract with a specific purpose in mind and is mistaken about that purpose, this is a motivating error. This error is only taken into account if the other party knew or should have known about that purpose.

Example: A businessman buys a piece of construction equipment expecting high performance, but it turns out to be low-capacity. If the seller is aware of this expectation, the buyer can cancel the contract based on the error.


3. Calculation Errors

Obvious errors in letters, numbers, or similar calculations are not considered fundamental errors. However, correction of these may be requested (Turkish Code of Obligations, Article 32).


Criteria for a Defined Error

According to Article 30/1-2 of the Turkish Code of Obligations, for an error to be considered fundamental:

  • It must be influential enough to cause the contract to be made

  • Directly influencing the party's declaration of intent

  • The other party must have understood, or be in a position to understand, this mistake


Legal Consequences of the Error

If the error is fundamental and other conditions are met, the contract may be deemed void. However, this is not absolute voidness, but rather voidability. This means that the contract remains valid unless the claim of error is raised by the party who made the error.

A party wishing to cancel a contract due to an error must do so the prescribed time limits .


Statute of Limitations

If error is to be invoked for the annulment of the contract, then according to Article 39 of the Turkish Code of Obligations:

  • The right to cancel one year .

  • Otherwise, the right to cancel expires.


Proof of Error

It is not enough to point out the error. The error must:

  • That it actually exists,

  • That it is of a substantial nature,

  • It affected the declaration of will

The party making the claim is obligated to prove it with evidence. In this context, pre-contractual correspondence, witness statements, technical reports, and invoice contents may be used.


Case Study in Practice: The Rental Car Fallacy

Scenario: Ceren makes a reservation expecting to rent a luxury SUV. However, upon delivery, she receives a lower-segment sedan. There is a significant discrepancy between what Ceren expected and what she received. In this situation, Ceren can cancel the contract due to a fundamental error.


The Impact of the Error on Bona fide Third Parties

Even if a contract is cancelled due to an error, this should not prejudice the rights of bona fide third parties. For example, if a third party who purchased goods based on the cancelled contract is acting in good faith, the sale may remain valid. This is a requirement of the principle of stability in commercial transactions.


The Difference Between Error and Other Disorders of Will

  • Deceptioninvolves deliberately misleading the other party. Mistake, on the other hand, is unintentional.

  • Coercion: The suppression of will through physical or psychological pressure.

  • Error: This occurs when a party makes a statement based on their own lack of information or misperception.


Conclusion

Error is a significant defect of will that affects the validity of a contract. However, not every error renders the contract invalid. Only fundamental errors that directly affect the intention behind the contract are considered grounds for annulment under Articles 30 and subsequent articles of the Turkish Code of Obligations.

When seeking the cancellation of contracts based on false statements attention must be paid to the time limit, the burden of proof must be fully prepared, the good faith of the other party must be investigated, and the contractual relationship must be evaluated from multiple perspectives.

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