19. Mistake as to subject matter not relieving from liability.

19.     Mistake as to subject matter not relieving from liability.

There are cases, however, where, on the true construction of the contract, one party or the other bore the risk that the facts would turn out differently from supposed, and that person was held liable under a contract to perform accordingly1. In considering the contractual allocation of risk in the absence of warranty, the maxim caveat emptor is relevant2.

There are also cases where the contract has been held not void at law, but voidable in equity because of a mistake as to subject matter