Contract 6 - Mistake Flashcards

1
Q

What is the effect of mistake?

A

Prevents a contract from taking legal effect - contract void from outset

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2
Q

What are the 3 categories of mistake?

A
  1. Common Mistake: both parties suffering from same mistake 😳😳
  2. Mutual Mistake: both parties mistaken but about different things 😳/😳
  3. Unilateral Mistake: 1 party mistaken and other knows 😳😏
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3
Q

What are the requirements for common mistake?
😳😳

A
  • Must be sufficiently fundamental to affect validity of contract 🌳

Will not operate where:
- one party is at fault; 😈
- contract makes provision for this issue πŸ“
(quality of goods does not void contract β­οΈπŸ“¦ e.g. painting)

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4
Q

What is the test for mutual mistake?
😳/😳

A

Objective πŸ‘€: What a reasonable 3rd party would believe the agreement to be, based on words and conduct of themselves. Only if a third party would think there was no discernible meaning will mistake apply .

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5
Q

What are the rules regarding unilateral mistake?
😳😏

A

where only one party has made a mistake - e.g. buying 30g of something for Β£1 rather than 30kg for Β£1

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6
Q

What are the rules regarding unilateral mistake of identity?
😳😏

A
  • misrepresentation - Where seller intended to deal with person in front of them & that’s what happened, NOT void for mistake, voidable for misrepresentation 😳😐
  • Mistake - Where seller can show that identity was of vital importance = VOID for mistake 😳πŸ₯Έ

Easier to show where not face to face as the mistake is then who they are contracting with rather than a person they are dealing with.

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7
Q

What happens where a fraudulent buyer sells goods onto a 3rd party?

A
  • misrepresentation- Where fraudster has voidable title, & title has not avoided at time of sale, 3rd party acquires good title where bought in good faith so C can’t take goods back πŸ˜³πŸ˜πŸ˜‡=😁
  • mistake = void & ineffective from outset so 3rd party must return goods even if bought in good faith😳πŸ₯ΈπŸ˜‡=😭
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8
Q

What is presumed where parties contract face to face?

A

Seller intended to deal with person in front of them - difficult to rebut

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