Theme 2 PT 3.1 MISTAKE

Question 1

MISTAKE IN A CONTRACTUAL SENSE:

Answer 1

1) Where a contracting party acts while under an incorrect impression regarding some or other fact that relates to or affects the contract between the parties

Question 2

CONSENSUS Components

Answer 2

1) TERMS
2) PARTIES
3) ANIMUS CONTRAHENDI

Question 3

MISTAKE:

Answer 3

1) Parties APPEARED to have reached an agreement.
HOWEVER:
2) One/ both have DIFFERENT subjective intention.

Question 4

Types of Mistakes

Answer 4

1) Casual
2) Non-Casual

Question 5

CASUAL:

Answer 5

1) Affects the mistaken party’s decision to
contract.

2) The party would either:
2.1) Have not contracted at all; OR
2.2) Would have contracted on different terms.

3) Relevant.

Question 6

NON-CASUAL

Answer 6

1) The party would have still contracted regardless of the mistake .

2) Irrelevant.

Question 7

MATERIAL (ESSENTIAL)
MISTAKE

Answer 7

1) Goes to the heart of the
contract

2) Completely negates
consensus.

3) No contract can be said to
have existed.

Question 8

NON-MATERIAL MISTAKE

Answer 8

1) Does not exclude actual
agreement.

2) A valid contract comes into
existence.

3) The contract is voidable
(rescindable) if consensus
was reached in an improper
manner by way of misrepresentation, duress, undue influence or
commercial bribery

Question 9

UNILATERAL MISTAKE

Answer 9

1) Where only ONE PARTY makes a casual mistake.

2) Dissensus (lack
of consensus):

3) Void

Question 10

MUTUAL
MISTAKE

Answer 10

1) BOTH PARTIES make casual mistakes, but they make different mistakes.

2) Dissensus (lack
of consensus):

3) Void

Question 11

COMMON
MISTAKE

Answer 11

1) BOTH PARTIES make the same casual mistake.

2) Consensus based on
common false supposition
(still void)

Question 12

MATERIAL MISTAKE:
Parties must:

Answer 12

1) SERIOUSLY INTENT to contract;

2) Be of the SAME MIND AS TO THE MATERIAL ASPECTS

3) Be AWARE that all parties are of the same mind.

4) If one or more of the above is lacking= material mistake.

Question 13

MISTAKE REGARDING THE PARTIES TO
THE CONTRACT
Case Example:

Answer 13

National and Overseas Distributors
Corporation (Pty) Ltd v Potato Board.

Question 14

MISTAKE REGARDING MATERIAL
TERMS
Case Example:

Answer 14

Allen v Sixteen Investments Stirling
Investments (Pty) Ltd.

Question 15

Du Toit v Atkinson’s Motors Bpk

Answer 15

1) Where a party is mistaken as to the contents of the obligations that the parties wish to create, any mistake arising there from is material.

Question 15

CLASSIFICATIONS

Answer 15

1) Error in corpore
2) Error in negotio
3) error in persona
4) error in substantia/qualitate
5) error in motive

Question 15

Error In Corpore

Answer 15

1) Mistakes can relate to the SUBJECT
MATTER of the contract.

2) MATERIAL MISTAKE

Question 16

Error In Negotio

Answer 16

1) Mistake relates to the TERMS OR
TRUE NATURE of the contract

2) See Khan v Naidoo.

3) MATERIAL MISTAKE

Question 17

Error In Persona

Answer 17

Mistake regarding the IDENTITY of
one of the parties to the contract
SOMETIMES MATERIAL.

Question 18

Error in Substantia/
Qualitate

Answer 18

1) Mistake re an ATTRIBUTE OR
CHARECTERISTIC of the SUBJECT MATTER of the contract.

2) It does not render the
contract void.

3) USUALLY NOT REGARDED AS A MATERIAL
MISTAKE

Question 19

Error In Motive

Answer 19

Mistake as to the party’s REASONS
for entering into the contract.
NON- MATERIAL