Certainty and agreement mistake

Question 2

How can mistake be categorised?

Answer 2

Common mistake and Offer and acceptance mistake

Question 3

What is common mistake?

Answer 3

Where both parties enter into the contract sharing the same mistake

Question 4

What is the effect of common mistake?

Answer 4

Nullifies the contract

Question 5

What is an offer and acceptance mistake?

Answer 5

One party is labouring under a mistake or the parties are at cross purposes

Question 6

What is the effect of an offer and acceptance mistake?

Answer 6

negatives consent and prevents a contract coming into existence

Question 7

What is the effect of a mistake as to the terms of the contract? Hartog v Colin & Shields

Answer 7

The party aware of the mistake will be unable to enforce his version of the contract against the mistaken party

Question 8

How was this evident in Smith v Hughes?

Answer 8

The terms of the contract did not specify the type of oats (old or new). Such that there was no obligation of the seller to correct the buyer

Question 9

What is a rogue?

Answer 9

A customer who sells on goods to an innocent third party, with no intention to pay for the goods at the time of acquisition. Assumption of a false identity

Question 10

What is the effects of mistake?

Answer 10

Render a contract void- the contract is set aside for all purposes and generally produces no legal effects

Question 11

How do the courts decide whether a mistake as to identity renders a contract void?

Answer 11

Shogun Finance v Hudson- distinguish between a contract entered orally or written

Question 12

What is the rule for face-face transactions?

Answer 12

The party intended to deal with the person in front of him. Mistaken identity is insufficient grounds to void a contract.

Question 13

What is the leading case for written transactions with a mistake as to identity?

Answer 13

Cundy v Lindsay