Mistake

Question 1

Mistake is an…

Answer 1

Erroneous belief of one or both of the parties about the true position in respect of the contract.

The ordinary meaning of mistake
- An erroneous belief, which is not in accord with the correct or true position of subject matter or state of affairs

Question 2

A court may grant relief under ti any party to a contract if… (3)

Answer 2

• Unilateral mistake; or
• common mistake ; or
• mutual mistake; and

Substantially unequal exchange of value, benefit or obligation; and

The complaining party is not required to take on the risk

Question 3

What is a unilateral mistake?

Answer 3

The mistaking party was influenced to enter into the contract by a mistake that was material to that party
- the mistake was known by the other party

Question 4

What is common mistake?

Answer 4

All the parties were influenced to enter the contract by some mistake

Question 5

What is mutual mistake?

Answer 5

The complaining party and atleast one other party were each influenced to enter the contract by different mistakes about the same matter (cross-purposes)

Question 6

Inequality in value

Answer 6

• substantial unequal exchange of value
  13.6 to 15.5% diminution in value is held to be substantial enough

Question 7

Risk

Answer 7

The complaining party is not required to take on the risk

Question 8

Court has the discretion to grant such relief as it thinks fit including…

Answer 8

• Cancel contract
• Vary the contract
• restitution or compensation
• vesting of property