Mistake

Question 1

What is a vitating factor?

Answer 1

One that impacts the validity of a contract

Question 2

What is the difference between void and voidable?

Answer 2

Void- contract never existed in the beginning

Voidable- contract exists but is damaged

Question 3

What is mistake?

Answer 3

Entering a contract based on a misunderstanding or error

Question 4

What are the types of mistake?

Answer 4

Communication mistakes-(terms, mistaken identity)

Common mistake of fundamental fact

Question 5

What test is applied for mistake to C terms?

Answer 5

Objective test, would r person think buyer had agreed to the sellers terms.

Question 6

What happened in centrovincial estates v merchant investors?

Answer 6

Quoted wrong rent price, 65k as opposed to 126k.

Found in favour of defendant as they were not to r have known it was wrong

Question 7

When is the objective test not applied?

Answer 7

. One party is aware the other has made a mistake

.seller causes buyer to make a mistake

Question 8

What happens when obj test for mistake to C terms cant be applied?

Answer 8

Courts look at whats in P’s terms to judge whether there was an agreement.

Question 9

What is the basis of identity mistake?

Answer 9

If original contract is void then rogue never owned the goods so when he sold them on 3rd party never owned them so original owner can claim back.

Question 10

What is the main question we have to ask to determine if the contract was void?

Answer 10

Did innocent seller intend to deal with the rogue?

Question 11

What are the other rules of mistake of id?

Answer 11

If intended to deal, contract not void, must regard id of rogue not just credibility.

Question 12

What happens if the rogue assumes id of someone who really exists?

Whats the case for this?

Answer 12

Contract is void

Shogun finance v Hudson

Question 13

What happens if rogue misreps his own creditworthiness?

Answer 13

Not void

Kings norton metal v edridge

Question 14

What is common mistake to fundamental facts?

Answer 14

There is consensus ad idem, but both parties are mistaken as to the same fact

Question 15

What is the test for FF as per the great peace?

Answer 15

i) common assumption as to the existence of the state of affairs
ii) fault of non existence is not attributable to either party
iii) renders performance impossible
iv) no warranty
v) state of affairs may be existence of consid

Question 16

What is the problem with the green peace test?

Answer 16

Very difficult to satisfy