Contract - Mistake Cases Flashcards
Couturier v Hastie
Common mistake as to the existence of the subject matter.
Parties contracted to buy/sell goods without knowledge that goods had already been destroyed.
Cooper v Phibbs
Common mistake as to the existence of the subject matter.
X contracted to sell his land to Y, but the land already belonged to someone else.
Bell v Lever Brothers
Common mistake as to fundamental fact or quality.
Must consider: “does the state of the new facts destroy the identity of the subject-matter as it was in the original state of the facts?”
Raffles v Wichelhaus
Mutual mistake - definition:
“objective appraisal of the facts reveals no agreement has been reached as to the terms of the contract”
Smith v Hughes
Oats case
For mutual mistake - objective test applied by the courts.
Hartog v Colin & Shields
Unilateral mistake
If offeror had made a mistaken offer contrary to hi intention, a knowing offeree cannot accept this offer.
L’estrange v Graucob
A signature is binding
Thoroughgood’s Case
Exception to L’estrange (signature is binding):
Person signing was suffering from blindness, illiteracy or senility.
Saunders v Anglia Building Society
Signature not binding if there has been fraudulent misrepresentation, however signing party must have taken reasonable care to ensure it was not fraudulent.
Lewis v Avery
Mistake as to person’s identity (identity not attributes)
‘Richard Greene’ the rogue.
Face to face mistake - contract voidable - there is a rebuttable presumption that one intends to deal with the person one is facing.
Shogun Finance Ltd v Hudson
Mistaken identity - distance selling
Mitsubishi and the rogue.
Contact void - seller not finance company but dealership.
N.B. Dissenting opinion from Lord Nicholls: remove face-to-face distinction and protect good faith purchaser in all cases.
