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Private Law I > Week Four > Flashcards

Week Four Flashcards

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1
Q

What is a bilateral error in contracts?

A

A bilateral error occurs when both parties are mistaken about an essential aspect of the contract.

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2
Q

What is a mutual error?

A

A mutual error occurs when parties are at cross purposes on an essential term of the contract, which may render the contract void.

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3
Q

What is an example of a mutual error case?

A

Raffles v Wichelhaus (1864): Example of mutual error regarding a ship, one leaving in October and another in December.

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4
Q

What issue was raised in Stuart & Co v Kennedy (1885)?

A

No consensus was reached, yet performance occurred, raising questions about remedies.

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5
Q

What is a common error?

A

A common error occurs when both parties make the same mistake regarding an essential aspect, having the same effect as mutual error.

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6
Q

What is an example of a common error case?

A

Hamilton v Western Bank of Scotland (1861): Both parties were at error as to price.

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7
Q

What statutory provision was missed in McLaughlin v The New Housing Association Ltd (2008)?

A

Both parties missed a statutory provision.

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8
Q

What is an induced unilateral error?

A

An induced unilateral error occurs when a misrepresentation by one party induces error in the other regarding a non-essential, but material aspect.

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9
Q

What is an example of an induced unilateral error case?

A

Ritchie v Glass (1936): Indicates that if misrepresentation had not occurred, the contract may not have been entered.

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10
Q

What is misrepresentation in contract law?

A

Misrepresentation occurs when one party persuades another to enter a contract under a mistaken belief.

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11
Q

What must misrepresentation involve?

A

An inaccurate statement of fact, not merely opinion.

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12
Q

What is an example of a case involving opinion versus fact in misrepresentation?

A

Flynn v Scott (1949): Saying a van is in good running order does not count if it is merely an opinion.

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13
Q

What are the effects of misrepresentation on a contract?

A

If misrepresentation induces an essential error, the contract is void.

If not essential, the contract is voidable.

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14
Q

To whom must misrepresentation be made?

A

Misrepresentation must be made to the innocent party by the other party in the contract.

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15
Q

What right does misrepresentation provide in contract law?

A

Misrepresentation provides the right to avoid a contract.

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16
Q

Which types of misrepresentation give rise to the right to sue for damages?

A

Only fraudulent and negligent misrepresentations give rise to the right to sue for damages.

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17
Q

What is innocent misrepresentation?

A

Misrepresentation made without fault, where the representor genuinely believes in the truth of the statement.

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18
Q

What is a case reference for innocent misrepresentation?

A

Boyd & Forrest v Glasgow & South Western Railway Co 1915 SC (HL) 20 (W&B 6-36).

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19
Q

What is fraudulent misrepresentation?

A

A false representation made knowingly, or without belief in its truth, or recklessly as to its truth or falsity.

20
Q

What did Lord Herschell say about proving fraud?

A

“Fraud is proved where it is shown that a false representation has been made knowingly, or without belief in its truth, or recklessly, careless whether it be true or false.”

21
Q

What are some case references for fraudulent misrepresentation?

A

Derry v Peek (1889) 14 App Cas 337, 334.

Smith v Sim 1954 SC 357.

22
Q

What is negligent misrepresentation?

A

A statement made carelessly or without reasonable grounds for belief in its truth.

23
Q

What are some case references for negligent misrepresentation?

A

Cramasco LLP v Ogilvie-Grant, Earl of Seafield [2014] UKSC 9 (W&B 6-38).

Law Reform (Miscellaneous Provisions) (Scotland) Act 1985 s.10.

24
Q

Do uninduced unilateral errors generally affect the contract?

A

Generally, these errors have no effect on the contract.

25
Q

Generally, these errors have no effect on the contract.

A

Stewart v Kennedy (1890) 17R (HL) 25.

Menzies v Menzies (1893) 1 SLT 60 (W&B 6-19).

26
Q

How can contracts or transactions be challenged with “error plus”?

A

Snatching at a bargain:
Steuart’s Trustees v Hart (1875) 3 R 192.

Angus v Bryden 1992 SLT 884 (W&B 6-25).

Wills v Strategic Procurement (UK) Ltd [2013]
CSOH 26 (W&B 6-26).

Chwee Kin Keong v Digilandmall.com [2004] 2
SLR 594.

Gratuitous Transactions:
Hunter v Bradford Property Trust Ltd 1970 SLT
173.

Edgar v Edgar [2014] CSOH 60.

27
Q

What happens if A has good title and transfers it to B?

A

On transfer, B acquires good title.

28
Q

What happens if A has no title and transfers it to B?

A

On transfer, B’s title is void (nemo dat quod non habet).

29
Q

What happens if A has title but the contract for transfer is void?

A

B’s title is void.

30
Q

What is the issue in Scenario A where Carlos believes he is hiring a painting for a dinner party, but Mustapha thinks it is a sale?

A

Misunderstanding over the nature of the contract (hire vs. sale).

31
Q

What is the issue in Scenario D where Carlos thinks the painting is a Dali, and Mustapha is aware of Carlos’s misbelief but does not correct it?

A

Unilateral error with potential misrepresentation by omission.

32
Q

What is the issue in Scenario B where Mustapha sells a painting claiming it is an Andy Warhol, but it is painted by his dentist?

A

Misrepresentation of the painting’s authenticity.

33
Q

What is a bilateral error?

A

Both parties hold a mistaken belief.

34
Q

What is the issue in Scenario C where both parties believe the painting is a Bosch, but it is a copy by a dentist?

A

Common error regarding the painting’s identity.

35
Q

What is a mutual error?

A

Misunderstanding between parties about terms.

36
Q

What is a common error?

A

Both parties share the same mistaken belief.

37
Q

What is a unilateral error?

A

Only one party holds a mistaken belief.

38
Q

What are substantial errors?

A

Errors essential to the validity of a contract.

39
Q

What are concomitant errors?

A

Errors that are not essential, secondary issues.

40
Q

What is an induced error?

A

An error caused by the other party.

41
Q

What is an uninduced error?

A

An error not caused by the other party.

42
Q

What is the effect of a void contract?

A

The contract is null and void.

43
Q

What is the effect of a voidable contract?

A

The contract is valid until challenged.

44
Q

What are the grounds for challenge when there is a disproportionate benefit during vulnerability?

A

Facility and circumvention.

45
Q

Which type of error does not give rise to damages?

A

Uninduced unilateral error.

46
Q

Whose interests are protected by courts in voidable agreements?

A

All parties involved.

Private Law I (9 decks)

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