rectification cases Flashcards
what were the facts Rose v Pim
Rose and Pim enter into a contract for the sale of horsebeans. Pim delivers a different type of horsebean than Rose thought they contracted on.
Is the claimant entitled to rectification?
The objective conduct of the parties suggested only an intention to contract for horsebeans. The court can only use rectification where there is clear proof that the written agreement does not correspond to the contract the parties entered into, the court cannot make a new contract.
what is facts in Robb v James
After the sale became unconditional, Robb discovered a piece of “lost land” and transferred it to his son Gary, who planned to build on it. The buyers claimed there was a shared understanding that they would own all the land and asked for the contract to be corrected to reflect this common intention.
is rectification applicable?
yes, rectification, If rectification would harm a bona fide purchaser who bought in good faith without knowing of the issue, equity steps in to block it. However, Gary wasn’t considered a bona fide purchaser because he knew about the sale and was involved in talks with the buyers. The court imposed a constructive trust since the land was transferred to Gary, who wasn’t part of the original sale agreement.
what is the facts in Westland Savings Bank v Hancock
Dispute about mortgage agreement being fixed or floating rate.
Can the Court rectify the contract?
Both parties acted as if the interest rate was floating, with the bank raising the rate and the Hancocks paying the higher amount. The court ruled that a formal statement of common intention isn’t necessary—it can be inferred from actions and evidence. However, that shared intention must be clearly visible and supported by concrete evidence.
