Mistake Flashcards
What is the effect of an operative mistake?
It renders the contract void.
What is a common mistake?
A type of operative mistake where both parties are suffering under the same misapprehension which is sufficiently fundamental to affect the validity of the contract.
What is a mutual mistake?
A type of operative mistake where both parties are mistaken, but about different things. The court will look to determine whether a reasonable person would infer the existence of a contract based on the words and conduct of the parties.
What is a unilateral mistake?
A type of operative mistake where one party is mistaken and the other party is deemed to know of the mistake. No agreement has been reached as acceptance does not correspond with the offer. E.g. offeror offering low price by accident.
What will the court presume about a unilateral mistake of identity in a face to face transaction?
The seller intended to deal with the person in front for them. Seller will need to show that buyer’s identity (not their attributes) were of vital importance.
What will the court presume in a distance selling transaction?
It will be easier for seller to show that they intended to deal with the person named in the correspondence.
What is the effect of a court finding unilateral mistake of identity?
The contract will be void and title to the goods will remain with the original seller.
