What is mistake (dwaling) in Dutch contract law?

Dutch term: Dwaling | Legal basis: Article 6:228 BW

Mistake (dwaling) under article 6:228 of the Dutch Civil Code is a ground for annulment of a contract where the contract was concluded under a fundamental misunderstanding about the facts. The mistake must concern a circumstance that was decisive for the mistaken party's decision to enter into the contract.

Annulment for mistake requires that the mistake was caused by information provided by the other party, by the other party's silence where it should have spoken, or that both parties shared the same incorrect assumption. A party cannot invoke mistake if the risk of the incorrect assumption should have been borne by that party. Annulment must be invoked within three years of discovery of the mistake.

Why it matters for international businesses

For international businesses, mistake is most commonly invoked in transactions where one party relied on inaccurate financial information, product specifications, or representations about regulatory status.