TUTORIAL QUESTIONS

TOPIC 10 VOID CONTRACTS,

VOIDABLE AND
UNENFORCEABLE CONTRACT
Group Members : Syafinaz Idrus, Nurul Syaqira, Nur Iman Syuhada, Raja
Shahirah, Syafiqa Alissa

DIRECT QUESTION 1
(UITM,JUNE 2016,Q5)
Define a unilateral mistake
With reference to relevant authorities, discuss the
consequence of a contract when a unilateral mistake is
present.
(6
Marks)

ANSWER
Unilateral mistake is when only one party is
mistaken as to the subject matter contained in the
contract agreement
It can occur with regards to any of the terms and
provisions contained in a contract. (Example :
Definition of a phrase or word)

 Section 21 of Contracts Act 1950:

Where both the parties to an agreement are under
a mistake as to a matter of fact essential to the
agreement, the agreement is void.

HARTOG V COLIN & SHIELDS

[1939] 3 ALL ER 566
Facts :
The defendants mistakenly offered a large quantity of hare skins at a
certain price per pound whereas they meant to offer them at that price per
piece. This meant that the price was roughly one third of what it should be.
The claimant accepted the offer.
Issue :
Whether the offer accepted by the claimant is valid by the defendants
mistake.

 Held :
The court held that the contract was void for
mistake. Hare skins were generally sold per piece
and given the price the claimant must have
recognised the mistake.

CONCLUSION
To conclude that, unilateral mistake is
rendered as void because it is concerning
the actual contractual terms to which the
parties were supposedly agreeing.