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    Hamza Khan
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    The document discusses different types of mistake in contract law: - Bilateral/mutual mistake occurs when both parties are mistaken about the same thing. It includes common mistakes, where both parties make the same mistake, and mutual mistakes, where the parties are mistaken in different ways. - Unilateral mistake occurs when only one party is mistaken. It discusses how unilateral mistakes about identity can allow rescission of a contract in some circumstances like distance sales but not face-to-face sales. - Common mistakes affect the nature of the agreement if the mistaken facts existed before the conclusion of the contract. Mutual mistakes mean there was no consensus or "meeting of the minds."

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    The document discusses different types of mistake in contract law: - Bilateral/mutual mistake occurs when both parties are mistaken about the same thing. It includes common mistakes, where both parties make the same mistake, and mutual mistakes, where the parties are mistaken in different ways. - Unilateral mistake occurs when only one party is mistaken. It discusses how unilateral mistakes about identity can allow rescission of a contract in some circumstances like distance sales but not face-to-face sales. - Common mistakes affect the nature of the agreement if the mistaken facts existed before the conclusion of the contract. Mutual mistakes mean there was no consensus or "meeting of the minds."

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    © All Rights Reserved
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    3 views9 pages

    Mistake

    Uploaded by

    Hamza Khan
    The document discusses different types of mistake in contract law: - Bilateral/mutual mistake occurs when both parties are mistaken about the same thing. It includes common mistakes, where both parties make the same mistake, and mutual mistakes, where the parties are mistaken in different ways. - Unilateral mistake occurs when only one party is mistaken. It discusses how unilateral mistakes about identity can allow rescission of a contract in some circumstances like distance sales but not face-to-face sales. - Common mistakes affect the nature of the agreement if the mistaken facts existed before the conclusion of the contract. Mutual mistakes mean there was no consensus or "meeting of the minds."

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pptx, pdf, or txt
    of 9

    LLB Contract

    Law
    Mistake
    • Aims

    • By the end of this lecture you should be able to:

    Understand Understand Apply Understand

    Understand the Understand the Apply the law Understand how


    different types of controversial area relating to unilateral the law relating to
    mistake; of ‘unilateral mistake as to misrepresentation
    mistake as to identity to a relates to mistake.
    identity’; problem question;
    and
    • Mistake – Classification ( Bilateral mistake )- has two types Common and mutual mistake
    • Then Unilateral mistake

    Mutual Common Unilateral


    mistake mistake mistake

    Both parties
    Both parties
    mistaken but Only one party
    make the
    in different mistaken
    same mistake
    ways
    • Mistake – Basic A mistake may mean that there was
    no agreement in fact:
    principles / Common • Mutual
    Mistake
    Or it may mean that the mistake
    • a- Subject matter destroys the nature of the
    agreement:
    • b- mistake as to • Common

    ownership
    It renders a contract void ab initio
    • c- mistake as to quality
    of the subject matter The mistaken facts must exist before
    the conclusion of the contract
    • Amalgamated Investment & Property v John
    Walker
    • Mutual mistake / there Such ambiguity that no
    is no consensus ad idem agreement could be
    – meeting of the minds found:
    • Raffels v Wichelhaus (1864)

    The test for agreement is


    objective
    • Smith v Hughes

    Links to ideas of ‘offer’


    and ‘acceptance’
    Res extincta
    • Courturier v Hastie (1856)
    • Sale of Goods Act 1979, Section 6
    • McRae v Commonwealth Disposals Commission

    Res sua
    Common
    • Cooper v Phibbs (1967)
    mistake
    Mistake must be ‘operative’ and affect a
    ‘fundamental quality’ of the contract
    • Bell v Lever Bros (1932)
    • Nicholson & Venn v Smith Marriott (1947)
    • Leaf v International Galleries (1950)
    • Associated Japanese Bank v Credit du Nord (1989)
    • Great Peace Shipping v Tsavliris Salvage (2002)
    Expression of intention
    • Hartog v Collin & Shields (1939)
    Unilateral Nature of document
    mistake • L’Estrange v Graucob (1934)

    Defence of ‘non est factum’


    • Incapacity – Thoroughgood’s Case
    (1584)
    • Fraud – Foster v MacKinnon (1869)
    • Negligence – Saunders v Anglia Building
    Society (1971)
    • Also – Lloyds Bank v Waterhouse (1990)
    The problem
    • Shogun Finance v Hudson (2003)

    Unilateral Distance sales

    mistake -
    • Cundy v Lindsay (1878)
    • King’s Norton Metal v Edridge Merrett & Co
    (1897)
    identity Face-to-face sales
    • Phillips v Brooks (1919)
    • Ingram v Little (1961)
    • Lewis v Avery (1972)

    The current position


    • Shogun Finance v Hudson (2003)
    Next Lecture 15
    lecture

    Discharge of
    contracts 1

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