Week Four Flashcards
What is a common error?
A mistaken, shared assumption as to one of the essentials.
What is a Mutual/Bilateral Error?
When the parties are at cross purposes as to one of the essentials?
What is a Unilateral error?
Where one party only is mistaken as to one of the essentials
What two cases are most relevant when referring to mutual error rendering contracts void and the details pertaining to such?
Raffles v Wichelhaus - Two ships they both were mistaken on the delivery day so due to mutual error there was no valid contract
Stuart & Co v Kennedy - Disagreement over the type of measurement, the court rules that stones are to be payed for at market rate due to lack of consensus after performance of terms
What two cases are most relevant when referring to common error rendering contracts void and the details pertaining to such?
Hamilton v Western Bank of Scotland
McLaughlin v The New Housing Association Ltd
Both parties at error as to price. Both had missed a statutory provision (for
calculating the price)
What case sets a precedent regarding induced unilateral error and what that is?
Ritchie v Glass 1936 - if without misrepresentation a contract would not have been formed then it doesn’t require the matter to be essential for it to be voided
What is misrepresentation?
Where one of the parties has said or done something to persuade the other to
enter into a contract under a mistaken belief.
What case sets a precedent regarding opinions not being cause for misrepresentation?
Flynn v Scott 1949 - Must be a stated fact not an opinion for misrepresentation - Van
When is a contract considered void or voidable from misrepresentation?
It is considered void if misrepresentation induces essential error, otherwise, it is merely voidable
What are the three forms of misrepresentation?
Innocent - Fraudulent - Negligent
Which forms of misrepresentation give rise to sue for damages?
Fraudulent and Negligent Misrepresentation
What case set an important precedent regarding innocent representation and what it is?
Boyd & Forrest v Glasgow S W Ry Co. 1915 S.C, Damages are possible for fraud cases but not for innocent misrepresentation
What case sets a precedent for defining Fraud?
Derry v Peek 1889, A false representation made knowingly without belief in its truth, recklessly without caring if its true or false
Other than Derry v Peek was case is relevant to Fradulent misrepresentation?
Smith v Sim 1954
What case is relevant for negligent misrepresentation and what precedent it sets?
Cramasco LLP v Ogilvie-Grant, Earl of Seafield - Misleading information without care in its truth can be cause enough to claim for damage
What case/s sets a precedent regarding uninduced unilateral errors and what that is?
Stewart v Kennedy 1890 - Menzies v Menzies - Normally of no effect to the contract
What does it mean by error plus?
More than just an error to affect consent in a contract
What cases are relevant when dealing with a contract or transaction that may be challenged where there is more than just an error?
Steuarts Trustees v Hart (1875,
Angus v Bryden 1992,
Wills v Strategic Procurement 2013,
Chwee Kin Keong v DIgilandmall.com 2004
What case/s are relevant for gratuitous contracts?
Hunter v Bradford Property Trust Ltd 1970
Edgar v Edgar 2014
