Mistake

Quiz Content

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. Why is English law so reluctant to allow a party to set aside a contract into which he has entered on the ground that he was mistaken in his 'innermost mind' when he entered into the contract?

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. Which of the following statements is true as regards a 'voidable' contract?

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. For what proposition of law does the decision of the House of Lords in Shogun Finance Ltd v Hudson [2003] UKHL 62; [2004] 1 AC 919 stand as authority?

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. A rogue X, who has done his research, goes to Garage Y and states that he wishes to purchase a new Alpha Romeo and to take it away immediately. He hands over a cheque for the full price. When the employee of Garage Y suggests that he cannot allow him to take the car away in return for a cheque which has not been cleared, X retorts that he is Yo Yamago, the CEO of the chain of Y garages. The employee shows no more resistance and allows him to take away the car on the strength of a £17,750 cheque. The signature is forged and the cheque subsequently bounces. By the time this fraud is discovered, X has sold the car on to another dealer Z for £15,000. Advise Garage Y on their chances of recovery of the car or its value from dealer Z.

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. Lord Atkin's judgment in Bell v. Lever Brothers [1932] AC 161 has led some to raise the question whether a mistake as to quality (Lord Atkin's third category of possible contractual mistake) can ever render a contract void at common law. Which of the following cases might provide evidence that these commentators are mistaken?

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. Nana sells a sculpture to Ted which they both believe to be by Giacometti. A high price is paid for the work of art. 18 months later, it is discovered that in fact the sculpture is a modern copy. Is Ted entitled to rescind the contract with Nana?

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. Would Lord Denning have disagreed with the outcome of the case in Great Peace Shipping Ltd v. Tsavliris Salvage (International) Ltd [2002] EWCA Civ 1407?

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. Where the mistake made by the parties is one that relates not to the making of the contract but to the recording of it, the parties may ask the court to rectify the contract.

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. One of the requirements for a finding of non est factum is "a radical difference between what [the claimant] signed and what he thought he was signing". Which of the following statements adequately describes the other requirement that must be fulfilled?

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