A contract made under a False Assumption. Contract wil be Void.
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Define Common Mistake
Both parties can be misaken over the existence of the subject matter or the quality of the subject matter.
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What's Res Extincta? Name some cases to demostate it.
A mistake over subject matter. Contract will be void. Cases: Coutourier v Hastie/ Galloway/ Scott v Coulson.
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What about if a party has provided a warranty? Provide a case
They have provided assurance that it exists. Contract not void but will be in breach, making the party liable for damages. Case: McRae v Commonwealth Disposals.
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What's Res Sua? Provide a case.
A mistake over subject matter. It means the item is his own and its very rare. Case: Cooper v Phibbs
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Define mistake over subject matter and provide all 5 cases.
Where the item's quality is an issue its simply a bad bargain. Contract only void if its FUNDAMENTALLY diiferent. Consideration= suficient. Cases:Bell v Lever Bro/ Leaf v Int. Galleries/ Assoc.*** Bank/ Sindall v Cambrideshire/ Great Peace Shipping
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What 4 criteria must be met for a mistake to be fundamental?
1) A common assumption over common affairs. 2) No warranty. 3) Non- existance of the affairs must not be either parties fault. 4) Non- existance of the affairs must make performace IMPOSSIBLE.
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Define Mutual Mistake. Provide 2 cases.
Where the parties have different assumptions from the beginning. Theres no true agreement. Cases: Raffles v Wichelhaus and Wood v Scarth
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Define Unilateral Mistake
Where only one party has entered the contact under mistake and the other party generally knows and takes advantage.
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Define a unilateral mistake through terms. Name a case
If one party makes a material mistake in expressing his intention and the other party knows then the mistake is operative and the contract is void. Case:Hartog v Colin + Shields
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Give the 3 elements that arose from the case
1) One party is genuinely mistaken and wouldnt have otherwise entered the contact. 2) The other party ought reasonably to have known of the mistake. 3) The partty making the mistake wasn't at fault in any way.
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Define a unilateral mistake through identity.
This involves creditworthiness. The courts must consider whether the parties dealt with eachother face to face or from a distance
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Whats Inter Praesentes and Whats Inter Absentes? Give cases for both.
Inter Presentes= a deal made face to face. Case: Phillips v Brooks/ Ingram v Little/ Lewis v Avery/ Shogun v Hudson. Inter Absentes= Not face to face. Case: Cundy v Lindsay.
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What are the rules for mistake over documents?
L'Estrange Rule: If you sign you're bound. However if its signed under pressure or misrep then you have 2 options. 1) Non est Factum and 2) Rectification.
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Define Non Est Factum and give some cases.
Non Est Factum= not my deed, you need to be blind or illiterate to claim this. Cases: Foster v Mackinnon/ Lloyds v Waterhouse/ Saunders v Anglia.
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Define Rectification and give some cases.
Where the courts amend the contract to reflect the parties initial agreement. Its available where theres common or unilateral mistake. The courts need clear evidence of original oral agreement. Case: Joscelyn v Nissen
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Other cards in this set
Card 2
Front
Both parties can be misaken over the existence of the subject matter or the quality of the subject matter.
Back
Define Common Mistake
Card 3
Front
A mistake over subject matter. Contract will be void. Cases: Coutourier v Hastie/ Galloway/ Scott v Coulson.
Back
Card 4
Front
They have provided assurance that it exists. Contract not void but will be in breach, making the party liable for damages. Case: McRae v Commonwealth Disposals.
Back
Card 5
Front
A mistake over subject matter. It means the item is his own and its very rare. Case: Cooper v Phibbs
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