Contract Law: Reasonable Mistakes and Invalidity
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Questions and Answers

In Dickinson Motors v. Obahozer case, both parties were fully aware of the car's true owner.

False

Common mistake allows either party to rescind the contract, even if the mistake is minor.

False

Rectification can be granted by the court if there are substantial errors in the written contract.

False

Obahozer paid 291 pounds to Dickinson Motors for a car his son owed money on.

<p>True</p> Signup and view all the answers

In the Dickinson Motors case, Obahozer received a different car than the one he thought he was getting.

<p>True</p> Signup and view all the answers

The court ordered Dickinson Motors to repay Obahozer 291 pounds because of a common mistake regarding a vital matter in the transaction.

<p>True</p> Signup and view all the answers

A reasonable mistake is known as a Justus error.

<p>False</p> Signup and view all the answers

In the case Logan v Beit 1890 7 SC/AC 19, a mistake made by one party due to their own carelessness is considered reasonable.

<p>False</p> Signup and view all the answers

Yelierton 1972(4) SA 114 states that reasonableness should not be decided on the facts of each case.

<p>False</p> Signup and view all the answers

A person may deny the existence of a contract if they are estopped from doing so.

<p>False</p> Signup and view all the answers

Unilateral mistake occurs when both parties are mistaken.

<p>False</p> Signup and view all the answers

According to George v Fairmead at 471, the mistaken party can be bound by the contract based on quasi mutual asset.

<p>True</p> Signup and view all the answers

Unilateral mistake can always vitiate a contract, regardless of the circumstances.

<p>False</p> Signup and view all the answers

According to National and Overseas Distributors Cooperation Pty Ltd v Potato Board, a unilateral mistake can vitiate a contract if the other party induced the mistake by misrepresentation.

<p>True</p> Signup and view all the answers

The scope for a degree of unilateral mistake is wide and covers various situations according to Lamdsbergen v Van der Walt.

<p>False</p> Signup and view all the answers

Mutual mistake occurs when only one party is mistaken about the other's intention.

<p>False</p> Signup and view all the answers

A unilateral mistake must be reasonable in order to vitiate a contract.

<p>True</p> Signup and view all the answers

In the case of Lamdsbergen v Van der Walt, it was held that any mistake, regardless of its materiality, can release the mistaken party from the contract.

<p>False</p> Signup and view all the answers

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