Mistake

Question 1

Mistake

Answer 1

The legal doctrine covers the position where there is a serious ambiguity as to the terms of the contract or the parties contractual assumptions.

Question 2

Section 23 definition

Answer 2

A mistake, whether of law or of fact. Includes mistake in interpretation of a document other than the subject contract.

Question 3

Section 24 Test

Answer 3

A court may grant relief under to any party to a contract if:
- Unilateral mistake; or
- Common mistake; or
- Mutual mistake; and
- Substantially unequal exchange of value, benefit pr obligations; and
- The complaining party is not required to take on the risk.

Question 4

Unilateral Mistake

Answer 4

• The mistaken party was influenced to enter into the contract by a mistake that was material to that party; and
• The mistake was known to the other party.

Question 5

Common mistake

Answer 5

All parties were influenced to enter the contract by the same mistake.

Question 6

Mutual Mistake

Answer 6

The complaining party and at least one other party were each influenced to enter the contract by different mistakes about the same matter.

Question 7

Inequality in Value

Answer 7

• “Substantially unequal exchange of value”
• 13.6 to 15.5% diminution in value held to be substantial enough.