Common Mistake

Question 1

Sale of Goods Act (1979) s6

Answer 1

If goods perish without the sellers knowledge at the time of making the contract, then the contract is void.

Question 2

McRae v Commonwealth Disposal’s Commission

Answer 2

Sale of tanker with oil in it.
Lots of expenses to collect it, but it did not exist. Seller knew this.
Contract had specifically referred to its existence and location = breach rather than mistake.

Question 3

Cooper v Phibbs

Answer 3

Leased fishery from Uncle, who died.
Assumed licence in trustees name so went to them to renew license.
But nephew given rights in will.
Voidable as claim based in equity as beneficial ownership not legal ownership.

Question 4

Sheikh Brothers v Ochsner

Answer 4

Granted rights to harvest certain amount of crops.
The land did not produce enough crops to reach this amount.
Contract void.

Question 5

Griffith v Brymer

Answer 5

Rent room for coronation.
Coronation had been cancelled.
Purpose of contract not possible at the time of the contract = contract void.

Question 6

Bell v Lever Bros

Answer 6

Secret trading breaching employment contract.
Offered a lot of money to terminate contact, redundancy - men not aware they didn’t need to be given any money because of breach.
Lever Bros wanted to recover money, but subject matter would have always been the same - termination of contract, so not fundamental mistake.
Heavily criticised.

Question 7

Leaf v International Galleries

Answer 7

Sale of painting believed to be an original.
Found it was a fraud when tried to sell five years later.
Too late to claim misrepresentation.
Mistake was about quality and value rather than substance of the thing itself.

Question 8

Great Peace Shipping v Tsavliris Salvage

Answer 8

Hires to help salvage a ship.
Thought Great Peace was only thirty miles away but was 410.
Service not affected, purpose of the contract was salvage and Mr distance.
The parties themselves saw contract could still go ahead as didn’t tell them immediate but kept them as a backup in case they couldn’t find another ship.
Sufficiently fundamental = essentially different.

Question 9

Couturier v Hastie

Answer 9

Sale of corn, deteriorated on ship so disposed of.

Contract void as subject matter no longer exists