The Theory of Mistake in Contract Law and Its Application to Digital Transactions in Nigeria: An Original Analysis

The classical doctrine of mistake in contract law was developed in an era of face-to-face commercial transactions and has been applied in Nigerian law without systematic theoretical adaptation to the challenges of digital contracting environments in which algorithmic errors, system glitches, automated pricing mistakes, and identity fraud generate a new taxonomy of contractual mistakes with distinctive consequences. This study advances an original theoretical analysis of the doctrine of mistake in Nigerian contract law and its application to digital transactions, developing a Digital Mistake Framework (DMF) as its original contribution to knowledge. Using a pluralist theoretical methodology combining philosophical analysis of mistake theory, doctrinal analysis of 55 Nigerian mistake cases from 2010 to 2024, comparative study of digital contract mistake in Singapore, the United Kingdom, and the United States, and empirical research involving 65 e-commerce lawyers, fintech operators, and technology platform counsel in Lagos and Abuja, the research constructs a comprehensive taxonomy of digital mistakes and evaluates how existing Nigerian doctrine responds to each category. The DMF advances original propositions on the treatment of automated pricing errors, algorithmic contract formation mistakes, identity mistakes in digital transactions, and mutual mistakes arising from system malfunctions. Findings reveal that Nigerian contract law provides inadequate and inconsistent guidance for digital mistake scenarios, creating significant commercial uncertainty. Recommendations include a Digital Transactions Act with specific mistake provisions, judicial guidelines on digital contract formation, mandatory error correction obligations for digital platforms, and legislative reform of mistake at common law. Keywords: mistake in contract, digital transactions, contract law theory, digital mistake, automated contracting