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contract law
vitiation: mistake
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Cards (129)
What is a common mistake in contract law?
Shared mistake about a
fundamental
matter
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Why does a common mistake make a contract void?
It makes
performance
impossible or very difficult
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What happens if the subject matter of a contract ceases to exist?
The contract is
void
for
common mistake
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In the case of S sold cargo of corn to B, why was B not liable to pay?
The cargo ceased to
exist
before the
contract
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What does Section 6 of the Sale of Goods Act 1979 state about perished goods?
The contract is void if goods perished
unknowingly
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What was the outcome in Associated Japanese Bank v Credit du Nord SA?
Plaintiffs recovered damages for
breach of contract
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Why was the guarantee in Associated Japanese Bank case ineffective?
The
machines
did not exist as guaranteed
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What was the mutual mistake in Cooper v Phibbs?
Both parties were unaware of
ownership
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What did Lord Atkin state about mistakes as to quality?
They raise difficult questions affecting
assent
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In Bell v Lever Bros Ltd, why was the claim for mistake refused?
The mistake was about a
quality
, not a
fact
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What did the court conclude in Leaf v International Galleries about the painting?
No
remedy
for mistake as it was
quality-based
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What are the four imperatives regarding mistake as to subject matter?
Uphold
contracts, cope with unexpected
circumstances
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What is a mistake as to possibility of performance?
Consent is
nullified
due to
impossibility
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What was the mistake in Sheikh Brothers Ltd v Ochsner about sisal production?
Both parties believed sisal could meet
quotas
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What did Kleinwort Benson Ltd v Lincoln City Council establish about mistake of law?
Money paid under mistake of law can be
recovered
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What was the outcome in Griffith v Brymer regarding the cancelled procession?
The contract was void due to
common mistake
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What is a mutual mistake in contract law?
Parties are at
cross purposes
in agreement
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What was the mistake in Raffles v Wichelhaus about the cotton bales?
Two ships named
Peerless
caused confusion
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What defines a unilateral mistake in contract law?
One
party
is mistaken, other knows it
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What happens when a contract is void due to unilateral mistake?
There is no link between
offer
and
acceptance
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What does 'vitiate' mean in contract law?
To make
void
or
voidable
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What is the general rule regarding face-to-face contracts and identity mistakes?
Contract is not
void
due to identity
presumption
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In Phillips v Brooks Ltd, why could the seller not recover the ring?
The contract was valid despite
identity
mistake
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What was the outcome in Lewis v Averay regarding the car sale?
The seller could not
recover
the car
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What was the ruling in Ingram v Little about the car sale?
The contract was
void
due to
identity
mistake
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What happens when a contract is formed but a fact destroys its basis?
The agreement may be
discharged
or vitiated
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Who did the fraudster claim to be in the case of Lewis v Averay?
Richard Greene
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What did L accept as confirmation of R's identity?
An official pass from
Pinewood Studios
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What happened to the car after R sold it?
It was sold to a
third
person
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What is the general rule regarding conduct and misrepresentation?
Conduct alone can give rise to
misrepresentation
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What was the court's decision regarding the recovery of the car?
C
could not recover the car from the buyer
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What did Denning LJ state about misrepresentation?
Any behavior can mislead if it conveys
false impression
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What was the name of the case involving Miss Elsie and Miss Hilda Ingram?
Ingram v Little
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What was the outcome of Curtis v Chemical Cleaning & Dyeing Co. Ltd?
Conduct
misled
the buyer
Concealment of dry rot was
fraudulent misrepresentation
No words were spoken, but actions implied all was well
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Why was the contract with 'Hutchinson' held void?
It was void for
mistake
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What was the case involving the Spice Girls and a motorcycle manufacturer about?
Misrepresentation
by
conduct
due to
Geri Halliwell's
departure
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What is vitiation in contract law?
It refers to the
invalidation
of a contract.
Occurs when an agreement is based on a mistaken fact.
Can lead to the contract being
discharged
or vitiated.
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What does the general rule state about misrepresentation of law?
A misrepresentation of law cannot
vitiate
a
contract
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Why is identity crucial in distance contracts?
To ensure the
correct
person receives goods
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What is the Latin phrase meaning 'ignorance of the law is no excuse'?
Ignorantia
juris non excusat
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