30 Questions
What must a mistake touch in order to negate consensus in a contract?
The mistake must touch the agreement in a material or fundamental respect.
In what circumstances can a contract be rescinded if consensus was reached improperly?
A contract can be rescinded if consensus was reached through misrepresentation, duress, undue influence, or commercial bribery.
What are the requirements for parties in a contract to avoid a material mistake?
Parties must seriously intend to contract, be of one mind as to material aspects, and be aware that all parties are of the same mind.
What are examples of material aspects that can lead to a material mistake?
Mistakes regarding the parties to the contract and mistakes regarding material terms are examples of material aspects.
What happens if there is an absence of consensus due to a material mistake?
If there is a material mistake leading to absence of consensus, no contract can be said to have existed.
What is the implication of a non-material mistake in a contract?
A non-material mistake does not exclude actual agreement, but the contract may be voidable if consensus was reached improperly.
What is mistake in a contractual sense?
Where a contracting party acts while under an incorrect impression regarding some fact that relates to or affects the contract.
What is the classification of mistake when only one party is mistaken and the other party is aware of the mistake?
Unilateral mistake
In a common mistake, who shares the mistake?
All parties to the contract
What is the term used for a mistake that would not void the contract even if the mistaken party would have entered into the contract despite the mistake?
Irrelevant mistake
When can the aggrieved party opt out of the contract or claim relief from the other party?
When the contract was based on a mistaken belief that a certain state of affairs existed when in fact it did not.
What must be shown to have influenced a party's decision to conclude a contract?
The mistake
What is the decisive question in a case of unilateral mistake according to Sonap Petroleum v Pappadogianis 1992?
Did the party lead the other party to believe that his declared intention represented his actual intention?
What are the three-fold inquiries usually necessary to determine unilateral mistake?
- Misrepresentation as to one party's intention. 2. Who made that representation. 3. Was the other party misled?
In Allen v Sixteen Stirling Investment, why did the court declare the written agreement null and void?
Because the plaintiff entered into the agreement under a fair or reasonable mistake.
What was the plaintiff's belief regarding the property in Allen v Sixteen Stirling Investment?
He believed he was buying an immovable property pointed out by the defendant's agents.
According to Sonap Petroleum v Pappadogianis, what postulates two possibilities regarding the other party being misled?
The other party being actually misled and whether a reasonable man would have been misled.
What was the approach set out by the South African Appellate Division in Sonap Petroleum v Pappadogianis for cases of unilateral mistake?
To determine if the actual intention matched the common intention expressed.
What is a legally recognizable mistake in the law of contract?
A party who concluded a contract under a bona fide and reasonable mistake as to its contents.
In what situation will a party not be bound by the provisions of a contract?
When they have concluded the contract under a bona fide and reasonable mistake as to its contents.
What is the remedy for correcting mistakes in written contracts?
Rectification.
When can parties correct themselves in a contract?
Parties can correct themselves by agreement.
What should parties do if they fail to correctly indicate their common intention in a written contract?
Parties can simply perform as per the correct intention.
In what case will a party not be bound by an agreement?
When they have relied upon misrepresentations by the other party.
What is the legal significance of a mistake in a contract according to the case of Kok v Osborne & Another 1993?
Mistake is material if it relates to terms of agreement, rather than motive.
In Venter and Others v Credit Guarantee Insurance Corporation of Africa Ltd. and Another 1996, when is error in persona considered material?
Error in persona is material only if the identity of a party is of vital importance to the mistaken party.
According to Davis AJ in Prins v Absa Bank Ltd 1998, what are the set of questions usually employed in considering a mistake in a contract?
a) Is there consensus? b) If not, is there dissensus caused by a mistake? c) Is the other party aware of the mistake? d) Who induced the mistake and was it done by commission or omission which was either fraudulent, negligent or even innocent?
In the case of Kok v Osborne & Another 1993, what scenario led to a mistake being identified?
The seller accepted an offer ostensibly made by two buyers jointly, but it was actually from only one buyer.
What was the consequence of the mistake in the case of Venter and Others v Credit Guarantee Insurance Corporation of Africa Ltd. and Another 1996?
The mistake was only considered material when the identity of a party was vital to the mistaken party.
How did the court determine the materiality of a mistake in the case of Kok v Osborne & Another 1993?
The court considered the mistake material based on its relation to the terms of the agreement, not the motive.
Explore the concept of Absence of Consensus and Mistake in the Law of Contract. Learn how mistaken beliefs regarding facts can affect contracts between parties. Understand the importance of reaching true consensus in contractual agreements.
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