Mistake & illegality

Question 1

What are the 3 types of mistake?

Answer 1

1. Common mistake - both parties have made same fundamental mistake
2. Cross-purpose mistake - parties are at cross-purposes about some crucial aspect of the contract
3. Unilateral mistake - only one party is mistaken

Question 2

What are the elements of common mistake?

Answer 2

Neither party is at fault, the contract has not made express provision on the matter, and the mistake is fundamental

Question 3

What is the only possible conclusion of cross-purpose mistake?

Answer 3

That there was no contract

Question 4

In what event is unilateral mistake commonly relied upon?

Answer 4

Where there has been a mistake as to identity of other contracting party

Question 5

If parties are dealing face-to-face, why can unilateral mistake not be used?

Answer 5

It is presumed they are dealing with party in front of them - therefore contract is unlikely to be declared void for mistake although might be rescinded for misrepresentation

Question 6

How are covenants in employment contracts which have restrictions in future employment often assessed?

Answer 6

Must not go further than reasonably necessary to protect the employer

Question 7

What remedies are available for mistaken identity contracts?

Answer 7

Only for the court to declare the contract void