Mistake

Question 1

Define vitiation

Answer 1

destroys the quality of; operates to render a contract

Question 2

Explain the difference between void and voidable

Answer 2

Void- The contract never existed
Voidable- contract continues unless injured party opts to cancel

Question 3

What might be the consequences of mistake?

Answer 3

render a contract void ab initio (as if the contract never existed)

Question 4

Define Bilateral/ Mutual Mistake + case law

Answer 4

the parties lack genuine agreement, its not possible to determine who is correct
Case Law- Raffles v Wichelhaus 1846- there was no contract, parties were referring to different subject matter

Question 5

Define Common Mistake

Answer 5

there is an agreement, but parties have made a fundamental mistake, therefore performance is made impossible or radically different

Question 6

Cases where court did not render the contract void

Answer 6

Bell v Lever Bros 1932- mistake as to quality will not affect assent, unless it is a mistake of both parties- how fundamental was the mistake
Triple Seven MSN 2018- the assumption made must be fundamental to the contract and fundamentally different from actual state of affairs
Smith v Hudges 1871- It is the buyer’s responsibility to ensure he is satisfied with the goods- sample was sent

Question 7

define res extincta + case law- subject matter

Answer 7

Mistake as to subject matter- Couturier v Hastie 1856- s6 Sale of Goods Act 1979- goods which have perished, makes sale void

Question 8

Define res sua + casе law- title

Answer 8

mistake as to title/ownership
Cooper v Phibbs 1867- a fishery, which did not belong to the uncle

Question 9

Mistake as to possibility of performance- legal/commercial/ physical

Answer 9

Legal Impossibility- Cooper v Phibbs 1867- uncle did not own the fishery, how could he pass it on to the nephew
Commercial Impossibility- Griffith v Brymer 1903- coronation case, hotel room booked, without the awareness that event no longer exists
Physical Impossibility- Skeikh Brothers 1957- area could not fit the production agreed in contract

Question 10

Define unilateral mistake and its exceptions

Answer 10

One-sided, generally not operative
Except when: non- mistaken party is aware or has generated the mistake

Question 11

Mistake as to identity- face to face- contract is valid

Answer 11

Phillips v Brooks 1919- face to face negotiation, claimant was not subject to fraud, they intended to contract

Question 12

But when is a contract void due to mistake as to identity

Answer 12

Ingram v Little 1960- rogue stole a person’s identity to whom claimant intended to sell
Cundy v Lindsay 1878- identity here was crucial

Question 13

Define the non est factum principle + case law

Answer 13

‘Not my deed’- Gallie v Lee 1971- old woman was mislead into signing a document, however L’estrange v Graucob applies- bound by what you sign

Question 14

Equitable remedies such as specific performance may be awarded

Answer 14

Tamplin v James 1880- defendant purchased property without looking at the floor plans, which didn’t match sale description

Question 15

Mistake as to attribute is insufficient- case law

Answer 15

Kings Norton Metal v Etridge 1897

Question 16

Claimant should suffer- distance negotiations

Answer 16

Lewis v Averay 1971- fraudster bought a car from Lewis and sold it to a 3rd party. Court protects the 3rd Party, although no one is at fault