40 Questions
What is the defence of non est factum based on?
A person's fundamental misapprehension as to the substance of the document
Who bears the burden of proof in a non est factum defence?
The party who signed the document
What is a rare example of a successful plea of non est factum?
A person signing a lease as a guarantor
What is the main issue in mistake in equity?
Whether a contract can be avoided in equity
What is the name of the case that led to the end of the equitable jurisdiction to set aside on terms?
The Great Peace
What is the requirement for a contract to be considered void due to a mistake?
The mistake is of both parties.
What was the consequence of the chairman and vice-chairman's breach of their contracts of employment?
The contracts were terminable at Lever Brothers' option.
What was the subject matter of the termination contract in the Bell v Lever Brothers Ltd case?
The employment contract and its terminability.
What was the mistake in the Bell v Lever Brothers Ltd case?
A mistake as to a quality of the subject matter.
What was the outcome of the Bell v Lever Brothers Ltd case for Lever Brothers?
They were unable to set aside the termination contracts and recover the money paid.
When will courts find a contract void due to a unilateral mistake?
When the non-mistaken party is aware of the mistake and proceeds to contract
What is the primary reason courts are unwilling to find a contract void due to a unilateral mistake?
To protect the non-mistaken party's reasonable expectations
What is the term for the situation in which a party signs a document that is fundamentally different from the one they intended to sign?
Non est factum
In which scenario is the non-mistaken party likely to bear the burden of proof?
When the non-mistaken party has created the mistake
What is the primary consequence of a unilateral mistake on contractual liability?
The contract is valid and binding on both parties
What is required for a contract to be void due to a mistake?
The other party is aware of the mistake and its consequences
In the case of Smith v Hughes, what was the sale of oats made by?
A sample
What is not sufficient to avoid a contract due to a mistake?
The promisor realising the promisee is mistaken
What is required of the promisor's conduct for the contract to be void?
It must verge on the fraudulent
What is the general rule regarding mistakes in contracts?
A mistake by one party is not enough to avoid the contract
What type of mistake is discussed in relation to identity?
Mistake as to identity
Which type of mistake is not relieved by law?
Unilateral mistake
What is the effect of an operative mistake at common law?
The contract is void
What is the role of equity in mistake?
To provide whatever remedy is just in the circumstances
Why are courts reluctant to find an operative mistake?
To avoid declaring contracts void
What happens when there is an absence of genuine agreement between parties due to bilateral mistakes?
No contract can be formed due to the absence of agreement
What is the result when the parties' separate mistakes are sufficiently fundamental in bilateral mistakes?
No contract can be formed due to the absence of agreement
What was the outcome in the case of Raffles v Wichelhaus?
The court found no contract due to the mistake
What happens when the mistake 'negatives' the consent of the parties to contract?
The parties have failed to create an agreement
What is the consequence when the parties are at 'cross purposes' in a bilateral mistake?
No contract can arise due to the absence of agreement
What is the outcome of a bilateral mistake in a contract?
A void contract
What was the limitation in English contract law regarding mistakes?
Only mistakes of fact were allowed
In which case was recovery of a mistaken payment allowed due to a mistake of law?
Kleinwort Benson Ltd v Lincoln City Council
What is the basis for determining if a mistake of law makes a compromise impossible?
A question of construction
What is the consequence of a bilateral mistake in a contract?
The contract is void
What is the significance of the Cooper v Phibbs case?
It held that a mistake as to private rights was a mistake of fact
What is the result of a common mistake of law in a contractual compromise?
The compromise is void
What is the significance of the Brennan v Bolt Burdon case?
It applied the decision in Kleinwort Benson Ltd v Lincoln City Council
What is the consequence of a bilateral mistake in a contract according to the House of Lords?
The contract is void
What is the requirement for determining if a mistake makes a compromise impossible?
A question of construction
Test your understanding of the non est factum defence in contract law, which renders a document void due to serious misrepresentation. Learn about the Gallie v Lee case and the flexible criterion for determining fundamental misapprehension.
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