Contract Law: Non Est Factum Defence
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Questions and Answers

What is the defence of non est factum based on?

  • A person's fundamental misapprehension as to the substance of the document (correct)
  • A person's negligence in signing a document
  • A person's mistake as to the identity of the other party
  • A person's failure to read the document carefully

    • Who bears the burden of proof in a non est factum defence?

  • The court
  • The party who signed the document (correct)
  • The party who prepared the document
  • The legal representative of the party who signed the document

    • What is a rare example of a successful plea of non est factum?

  • A person signing a document with a minor mistake
  • A person signing a lease as a guarantor (correct)
  • A person signing a contract without reading it
  • A person signing a document under duress

    • What is the main issue in mistake in equity?

    <p>Whether a contract can be avoided in equity</p> Signup and view all the answers

    What is the name of the case that led to the end of the equitable jurisdiction to set aside on terms?

    <p>The Great Peace</p> Signup and view all the answers

    What is the requirement for a contract to be considered void due to a mistake?

    <p>The mistake is of both parties.</p> Signup and view all the answers

    What was the consequence of the chairman and vice-chairman's breach of their contracts of employment?

    <p>The contracts were terminable at Lever Brothers' option.</p> Signup and view all the answers

    What was the subject matter of the termination contract in the Bell v Lever Brothers Ltd case?

    <p>The employment contract and its terminability.</p> Signup and view all the answers

    What was the mistake in the Bell v Lever Brothers Ltd case?

    <p>A mistake as to a quality of the subject matter.</p> Signup and view all the answers

    What was the outcome of the Bell v Lever Brothers Ltd case for Lever Brothers?

    <p>They were unable to set aside the termination contracts and recover the money paid.</p> Signup and view all the answers

    When will courts find a contract void due to a unilateral mistake?

    <p>When the non-mistaken party is aware of the mistake and proceeds to contract</p> Signup and view all the answers

    What is the primary reason courts are unwilling to find a contract void due to a unilateral mistake?

    <p>To protect the non-mistaken party's reasonable expectations</p> Signup and view all the answers

    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?

    <p>Non est factum</p> Signup and view all the answers

    In which scenario is the non-mistaken party likely to bear the burden of proof?

    <p>When the non-mistaken party has created the mistake</p> Signup and view all the answers

    What is the primary consequence of a unilateral mistake on contractual liability?

    <p>The contract is valid and binding on both parties</p> Signup and view all the answers

    What is required for a contract to be void due to a mistake?

    <p>The other party is aware of the mistake and its consequences</p> Signup and view all the answers

    In the case of Smith v Hughes, what was the sale of oats made by?

    <p>A sample</p> Signup and view all the answers

    What is not sufficient to avoid a contract due to a mistake?

    <p>The promisor realising the promisee is mistaken</p> Signup and view all the answers

    What is required of the promisor's conduct for the contract to be void?

    <p>It must verge on the fraudulent</p> Signup and view all the answers

    What is the general rule regarding mistakes in contracts?

    <p>A mistake by one party is not enough to avoid the contract</p> Signup and view all the answers

    What type of mistake is discussed in relation to identity?

    <p>Mistake as to identity</p> Signup and view all the answers

    Which type of mistake is not relieved by law?

    <p>Unilateral mistake</p> Signup and view all the answers

    What is the effect of an operative mistake at common law?

    <p>The contract is void</p> Signup and view all the answers

    What is the role of equity in mistake?

    <p>To provide whatever remedy is just in the circumstances</p> Signup and view all the answers

    Why are courts reluctant to find an operative mistake?

    <p>To avoid declaring contracts void</p> Signup and view all the answers

    What happens when there is an absence of genuine agreement between parties due to bilateral mistakes?

    <p>No contract can be formed due to the absence of agreement</p> Signup and view all the answers

    What is the result when the parties' separate mistakes are sufficiently fundamental in bilateral mistakes?

    <p>No contract can be formed due to the absence of agreement</p> Signup and view all the answers

    What was the outcome in the case of Raffles v Wichelhaus?

    <p>The court found no contract due to the mistake</p> Signup and view all the answers

    What happens when the mistake 'negatives' the consent of the parties to contract?

    <p>The parties have failed to create an agreement</p> Signup and view all the answers

    What is the consequence when the parties are at 'cross purposes' in a bilateral mistake?

    <p>No contract can arise due to the absence of agreement</p> Signup and view all the answers

    What is the outcome of a bilateral mistake in a contract?

    <p>A void contract</p> Signup and view all the answers

    What was the limitation in English contract law regarding mistakes?

    <p>Only mistakes of fact were allowed</p> Signup and view all the answers

    In which case was recovery of a mistaken payment allowed due to a mistake of law?

    <p>Kleinwort Benson Ltd v Lincoln City Council</p> Signup and view all the answers

    What is the basis for determining if a mistake of law makes a compromise impossible?

    <p>A question of construction</p> Signup and view all the answers

    What is the consequence of a bilateral mistake in a contract?

    <p>The contract is void</p> Signup and view all the answers

    What is the significance of the Cooper v Phibbs case?

    <p>It held that a mistake as to private rights was a mistake of fact</p> Signup and view all the answers

    What is the result of a common mistake of law in a contractual compromise?

    <p>The compromise is void</p> Signup and view all the answers

    What is the significance of the Brennan v Bolt Burdon case?

    <p>It applied the decision in Kleinwort Benson Ltd v Lincoln City Council</p> Signup and view all the answers

    What is the consequence of a bilateral mistake in a contract according to the House of Lords?

    <p>The contract is void</p> Signup and view all the answers

    What is the requirement for determining if a mistake makes a compromise impossible?

    <p>A question of construction</p> Signup and view all the answers

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