Explanation of Article 53
This article addresses the statement of "fundamental mistake," which is: an incorrect perception of reality that leads to the nullification of the contract. The article states that a mistake is considered fundamental in two cases:
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First: If the mistake "affects the will," meaning that the mistake has influenced the contracting party's will, such that if the mistake had not occurred, the party would not have proceeded to conclude the contract. For example, if a person buys a car believing it to be new, and then discovers it is used, in this case, the mistake is fundamental; because if they had known it was used, they would not have bought it.
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Second: If the mistake "relates to a fundamental attribute of the subject matter of the contract," meaning that the mistake pertains to an essential attribute of the subject matter of the contract, such that if this attribute did not exist, the party would not have proceeded to conclude the contract. For example, if a person buys a painting believing it to be original, and then discovers it is fake, in this case, the mistake is fundamental; because if they had known it was fake, they would not have bought it.
It should be noted that a mistake is not considered fundamental if it pertains to a secondary attribute of the subject matter of the contract, or if it pertains to an attribute that does not affect the contracting party's will.
A fundamental mistake results in the "nullification of the contract," so it does not produce any legal effect.
Related To
Article 53
The dispositions of a spendthrift or an imprudent person who are under interdiction shall be deemed to be the same as those of a discerning minor; however, their dispositions before the interdiction shall be deemed valid, unless such dispositions resulted from exploitation or collusion.