mistake

Question 1

In contract law, what is the term for a mistake recognised as preventing a contract from taking legal effect?

Answer 1

An ‘operative mistake’.

Question 2

What is the legal consequence for a contract if it is affected by an operative mistake?

Answer 2

The contract is void from its beginning (void ab initio).

Question 3

What is the meaning of the Latin term ‘void ab initio’ in relation to a contract?

Answer 3

The contract is declared a nullity from its beginning.

Question 4

How does a ‘void’ contract differ from a ‘voidable’ contract?

Answer 4

A void contract has no legal effect from the outset, whereas a voidable contract is valid until it is brought to an end.

Question 5

The law of mistake is an exception to which general rule of contract law?

Answer 5

The general rule that parties are bound by the terms of their agreement.

Question 6

At its heart, the concept of mistake suggests that the parties have not truly reached what?

Answer 6

An agreement.

Question 7

What are the three categories of operative mistake in English contract law?

Answer 7

Common mistake, mutual mistake, and unilateral mistake.

Question 8

Which category of mistake occurs when both parties to an agreement are suffering from the same misapprehension?

Answer 8

Common mistake.

Question 9

Which category of mistake occurs when both parties are mistaken, but about different things, negotiating at cross-purposes?

Answer 9

Mutual mistake.

Question 10

Which category of mistake occurs when only one party is mistaken, and the other party knows or is deemed to know of the mistake?

Answer 10

Unilateral mistake.

Question 11

What type of common mistake makes a contract void, unless the contract provides for this possibility?

Answer 11

A mistake where the subject-matter of the contract is not in existence at the time of the contract, unbeknown to both parties.

Question 12

What is the general proposition regarding a mistake about the quality of goods in a contract?

Answer 12

In the absence of contractual misdescription, a mistake about the quality of goods does not void the contract.

Question 13

In Bell v Lever Brothers, what test was suggested for when a mistake as to quality might be so severe as to void a contract?

Answer 13

The test of whether the mistake makes the subject matter ‘essentially different’ from that intended.

Question 14

In Leaf v International Galleries, what did the court state, obiter, about a common mistake regarding a painting believed to be a Constable?

Answer 14

The court stated that a claim in mistake would fail because the parties contracted for a painting and received a painting.

Question 15

List the three circumstances where a common mistake will not operate to void a contract.

Answer 15

1. The mistake is not sufficiently fundamental
2. one party is at fault
3. or the contract makes provision for the issue.

Question 16

A contract for the sale of a horse will be void for _____ mistake if the seller intended to sell their chestnut horse, but the buyer thought they were buying the grey horse.

Answer 16

mutual

Question 17

In cases of mutual mistake, what test will a court employ to determine what a reasonable third party would believe the agreement to be?

Answer 17

An objective test.

Question 18

Under the objective test for mutual mistake, what happens if a reasonable person would infer the existence of a contract in a given sense?

Answer 18

The court will hold that a contract in that sense is binding upon both parties, notwithstanding the mistake.

Question 19

Under what circumstances is a unilateral mistake as to the expression of intention likely to make a contract void?

Answer 19

When the offeror makes a material mistake in expressing their intention and the other party knows, or is deemed to know, of the error.

Question 20

In Hartog v Colin & Shields, why was the contract for hare skins held to be void?

Answer 20

The sellers mistakenly offered a price per pound instead of per piece, and the claimants were aware of this mistake.

Question 21

What is the legal principle established in Hartog v Colin & Shields regarding mistaken offers?

Answer 21

A party cannot ‘snap up’ an offer when they are aware that the other party has made a mistake relating to the offer terms.

Question 22

What is the general rule established in L’Estrange v Graucob regarding signed documents?

Answer 22

A person is bound by the terms of any instrument which they sign, even if they did not read or understand it.

Question 23

What is the name of the defence that can be raised when a person signs a document under a mistaken belief as to its nature?

Answer 23

Non est factum (‘it is not my deed’).

Question 24

A plea of non est factum may be available if the mistake was due to the blindness, illiteracy, or _____ of the person signing.

Answer 24

senility

Question 25

Besides the signer's condition, under what other circumstance might a plea of *non est factum* be available?

Answer 25

Where there was a trick or fraudulent misrepresentation as to the document's nature, provided the person took all reasonable precautions.

Question 26

In *Thoroughgood's Case*, why was the deed executed by an illiterate woman declared a nullity?

Answer 26

She was induced to sign it believing it concerned rent arrears when it was actually a release of claims against another person.

Question 27

According to the summary, a common mistake as to the existence of the subject matter will render a contract void, unless what?

Answer 27

The contract impliedly or expressly allocates this risk.

Question 28

A common mistake as to a fact or quality fundamental to the agreement will render a contract void only in what circumstances?

Answer 28

In the most severe instances of mistake.

Question 29

According to the summary, what is the consequence of a mutual mistake as to the identity of the subject matter?

Answer 29

The contract is void.