Mistake Flashcards
(8 cards)
Great Peace Shipping v Tsauliris International (2003)
A ship contracted a company that offered a rescuing service and engaged int a contract with GPS to do the salvage work. They claimed they were 35 miles out but by mistake was 410. GPS tried to cancel the contract however it was held the mistake did not render the contract essentially different.
Bell v Lever Bros Ltd (1932)
Lever Bros appointee mr bell and mr snelling, the contract was supposed to run for 5 years but they decided to make them redundant. Lever Bros agreed to pay both substantial compensation, it later emerged that both employees were doing fraud against the company. Lever Bro sues for mistake, however it was held that it was not a fundamental term if the contract as the mistake to the quality did not render the contract essentially different.
Hartog v Colin & Shields
Unilateral mistake - The defendant mistakenly offered to sell a number of horeskins. The price was determined at a certain sum per pound instead of the correct sum per piece. This was a mistake but financially advantageous to the plaintiff, which they had knowledge of.
Voided by mistake
Shotgun Finance Ltd v Hudson (2003)
Fraudster purchased a car from a car dealer, the payment was a (hire purchase) the fraudster produced a stolen driving licence and used the false proof for the credit check.
The HoL held that the contract was void for mistake as the finance company intended to deal with the person whose identity was stolen.
Ingram v Little (1961)
Two sisters sold a car to graduates calling himself Mr Hutchinson l. The fraudster gave the sisters his full details to convince them to accept a cheque, the cheque was dishonoured as the identity was false. The fraudster sold the car to someone else. Mr little.
It was held that the contract was void for mistake as the sisters only intended to deal with mr Hutchinson.
Smith v Hughes
Unilateral mistake - A buyer purchased oars from the seller, the buyer thought he was buying old oats but in fact it was new oats that he didn’t want. The seller knew about this mistake but it was held it was not a mistake as the mistake was not regarding a fundamental terms of the contract only quality.
Lewis c Averay (2972)
The claimant sold his Mini Cooper to a fraudster who claimed he was an actor. The claimant was satisfied with his proof of identity but later the cheque was dishonoured. The fraudster sold the car to Mr. averay. It was not void for mistake as Averay bought in good faith.
Galloway v Galloway (1914)
The parties thought they had been married to each other, they made a separation agreement. They realised they weren’t married in the gift place & therefore the contact was void. Subject matter ceased to exist at the time of the contract.
