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Questions and Answers
A court will opine that a mistake in the subject matter of a sale makes the contract void.
A court will opine that a mistake in the subject matter of a sale makes the contract void.
False
Rectification is an equitable remedy given when an agreement does not reflect the intentions of the parties due to a mistake shared by both parties.
Rectification is an equitable remedy given when an agreement does not reflect the intentions of the parties due to a mistake shared by both parties.
True
Mistake can be a reason for a contract to be effective.
Mistake can be a reason for a contract to be effective.
False
Exceptional mistake is a type of mistake in contract law.
Exceptional mistake is a type of mistake in contract law.
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Unilateral mistake occurs when only one party to the contract is mistaken.
Unilateral mistake occurs when only one party to the contract is mistaken.
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Common mistake is a type of mistake where both parties have the same misconception.
Common mistake is a type of mistake where both parties have the same misconception.
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A court will grant specific performance if the purchaser's mistake over the boundary of the property being sold at auction was caused by an innocent mistake on the vendor's part.
A court will grant specific performance if the purchaser's mistake over the boundary of the property being sold at auction was caused by an innocent mistake on the vendor's part.
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Denny v Hancock is a case where the court refused to grant specific performance due to a mistake.
Denny v Hancock is a case where the court refused to grant specific performance due to a mistake.
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A void contract is automatically of no effect from the beginning.
A void contract is automatically of no effect from the beginning.
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A voidable contract remains valid until the party with the right to rescind exercises that right.
A voidable contract remains valid until the party with the right to rescind exercises that right.
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Mistakes can arise in different forms, including mistake as to quality of the subject matter of the contract.
Mistakes can arise in different forms, including mistake as to quality of the subject matter of the contract.
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For a mistake to have a legal effect on a contract, the mistake must have existed after the contract was concluded.
For a mistake to have a legal effect on a contract, the mistake must have existed after the contract was concluded.
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Where the parties deal with each other face to face, with one party fraudulently misrepresenting themselves, there is a strong presumption that the offeror intended to contract with the person who was physically present.
Where the parties deal with each other face to face, with one party fraudulently misrepresenting themselves, there is a strong presumption that the offeror intended to contract with the person who was physically present.
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A contract can be rescinded due to a common mistake, where the parties have a shared mistaken assumption about a fundamental aspect of the contract.
A contract can be rescinded due to a common mistake, where the parties have a shared mistaken assumption about a fundamental aspect of the contract.
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A contract is voidable if one party has a right to rescind it.
A contract is voidable if one party has a right to rescind it.
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A void contract is valid until a party exercises their right to rescind.
A void contract is valid until a party exercises their right to rescind.
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Fosu Yaa Konadu's index is 7893123
Fosu Yaa Konadu's index is 7893123
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Ama Agyeiwaa Dapaah's index is 7895023
Ama Agyeiwaa Dapaah's index is 7895023
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Asante Awo Durowaa's index is 7896323
Asante Awo Durowaa's index is 7896323
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Ellen Akushika Apotey's index is 7890123
Ellen Akushika Apotey's index is 7890123
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Akosua Yaba Boateng's index is 7890123
Akosua Yaba Boateng's index is 7890123
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Owusu Ansah Blessing's index is 7902923
Owusu Ansah Blessing's index is 7902923
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Study Notes
Mistake in Contracts
- A voidable contract is a contract under which a party has a right to rescind it; it remains valid until the party exercises that right.
- A void contract is automatically of no effect from the beginning and is a complete legal nullity that does not confer any rights on the parties.
Types of Mistakes
- Common mistakes may arise in different forms except mistake as to the quality of the subject matter of the contract.
- Mistakes can be classified into unilateral, mutual, and common mistakes.
- Unilateral mistake is a type of mistake where only one party to the contract is mistaken.
- Common mistake arises when both parties share the same mistaken assumption.
Cases and Remedies
- In Amalgamated Investment and Property Ltd v John Walker, the court emphasized that for a mistake to have any legal effect on a contract, the mistake must have existed at the time the contract was concluded.
- In Philips v Brooks, where the parties deal with each other face to face with one party fraudulently misrepresenting himself to be another existing person, there is a strong presumption that the offeror intended to contract with the person who was physically present and none else.
- Rectification is an equitable remedy that may be given when an agreement which has been reduced into writing and owing to a mistake shared by both parties does not reflect the intentions of the parties as revealed from the previous parole agreement.
Consequences of Mistakes
- In equity, mistake operates in various ways, except that mistakes may be a reason for the contract to be effective.
- Mistake may be a defense in an action for specific performance.
- Mistakes may entitle the parties to have a written contract rectified.
- Mistakes may also be grounds for the rescission of a contract.
Specific Cases and Examples
- In a case where A bought a picture from B, both believing it was painted by Constable, but it was later discovered that it was not, the court is likely to opine that there was no mistake at all about the subject matter of the sale to make the contract void.
- In Denny v Hancock, the court refused to grant specific performance where the purchaser's mistake over the boundary of the property being sold at auction had been caused by an innocent mistake on the vendor's part.
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Description
This quiz assesses your understanding of contracts, including void and voidable contracts. Test your knowledge with multiple-choice questions on contract law.
