Mistake

Question 1

Bell v Lever Bros

Answer 1

If B is not responsible for A’s mistake, it has no effect, even if known to B

• not void
• A got exactly what he bargained for

Question 2

Solle v Butcher

Answer 2

common mistake

• threshold for mistake is very high at least for mistake as to quality
• denning says: ‘fundamental’ mistake
• disproved
• if there is no cause of action in common law, you can’t fall back on equity

Question 3

Great Peace shipping v Tsavaliris

Answer 3

• what is a ‘fundamental’ mistake?
• something that is essentially different from what it was believed to be
• if it can still be performed then it is not void
• high threshold for mistake to be void

Question 4

Cundy v Lindsey (when voidable)

Answer 4

if voidable, it needs to be done before a bona fide 3rd party purchases

Question 5

Redgrave v hurd

Answer 5

if B makes a misrepresentation there is no contract because no consensus ad idem and B cannot benefit from his false statement

Question 6

Couturier v Hastie

Answer 6

VOID = hl said if subject matter did not exist at formation then contract was never formed and is void

Question 7

McRae v Commonwealth

Answer 7

if one party actually guarentees existence then contract will not be void - no mutual mistake because seller guaranteed (it’s a mis rep)

Question 8

Cooper v Phibbs

Answer 8

legal impossiblity = void

Question 9

Sheikh Bros v Oschner

Answer 9

physical impossibility = void

Question 10

Griffith v Brymer

Answer 10

commercial impossibility = void

Question 11

Great Peace 5 main principles for what is fundamental

Answer 11

v high threshold

1. common assumption as to the particular state of affairs
2. neither party warranted the state of affairs
3. non-existence is not either parties fault
4. non-existence must render contact impossible
5. state of affairs ‘might be a vital attributable’ to consideration provided

Question 12

cundy v lindsey (identity)

Answer 12

deliberate misrep of identity means there was never a contract between the rogue and the claimant

Question 13

Shogun v Hudson

Answer 13

affirmed Cundy

• mistaken identity means there was never a contract
• can sue 3rd party for conversion but cannot set aside the contract after its passed on

Question 14

hartog v collin & shields

Answer 14

if mistake made by seller and buyer knows then it is a mistake and VOID (unless reasonable for B to believe there is no mistake)

Question 15

raffles v wichelhaus

Answer 15

if reasonable 3rd party would interpret with either parties then there is no common intention and so there is a MUTUAL MISTAKE