38 Questions
What is the key requirement for a mistake to negate consensus in a contract according to Khan v Naidoo 1989?
The mistake must touch the agreement in a material or fundamental respect.
In the context of contract law, what happens if there is a material mistake in the agreement?
No contract can be said to have existed.
When does a contract become voidable in case of a non-material mistake?
A valid contract exists but is voidable if consensus was reached improperly.
What are the requirements for parties in the case of a material mistake according to Absence of Consensus: Mistake?
Parties must have a serious intention to contract, be of one mind on material aspects, and be aware of each other's agreement.
What happens if one or more of the requirements for parties in a contract are lacking?
It constitutes a material mistake.
Can a contract be rescinded if consensus was reached through misrepresentation, duress, undue influence, or commercial bribery?
Yes, the contract is voidable in such cases.
What are examples of material aspects that can lead to a material mistake in a contract?
Mistakes regarding parties to the contract and mistakes regarding material terms.
What is the definition of 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 between the parties.
What is the main consequence of a contract being based on a mistaken belief?
The aggrieved party may want to opt out of the contract or claim relief from the other party.
Define unilateral mistake in the context of contract law.
Unilateral mistake occurs when only one party is mistaken and the other party is aware of the mistake.
What is the key characteristic of mutual mistake in contract law?
Both parties are mistaken about each other's intention, and neither party is aware of the other's mistake.
Explain the concept of common mistake in contract law.
Common mistake occurs when the mistake is shared by all parties to the contract.
What is the significance of an irrelevant mistake in a contract?
If the mistaken party would have entered into the contract despite the mistake, it is regarded as irrelevant.
What condition must be met for a mistake to be considered influential in a party's decision to conclude a contract?
The mistake must be shown to have influenced a party's decision to conclude the contract.
What type of mistake does not affect consensus?
Non-material mistake
In which case does a mistake arise due to a party being unaware of the contents of the obligations they wish to create?
Lack of understanding of legal consequences of a contractual provision
What type of mistake involves a misunderstanding regarding the reason or motive for entering into an agreement?
Error in motive
What is the classification of mistakes based on their impact on the consensus?
Material/non-material mistakes
Which case illustrates a mistake related to the true nature of the contract?
Khan v Naidoo 1989 (3) SA 724 (N)
What is the term used for a mistake regarding the law relating to some aspect of the transaction?
Error iuris
Name one of the types of mistakes that can relate to the subject matter of the contract.
Mistake re the identity of one of the parties to the contract
What is the legal term used to describe a mistake in identifying one of the parties involved in a contract?
Error in persona
According to Venter v Credit Guarantee Insurance Corporation of Africa Ltd., when is error in persona considered material?
When the identity of a party is of vital importance to the mistaken party
In the context of contract law, what is the significance of consensus?
Consensus is essential for the formation of a valid contract
What are the four questions outlined by Davis AJ in Prins v Absa Bank Ltd. to consider in cases of mistake?
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?
What is the role of mistake in causing dissensus in a contract?
Mistake can lead to dissensus by creating a disagreement or lack of understanding between the parties
Explain the concept of 'absence of consensus' in the context of contract law.
Absence of consensus refers to situations where the parties do not reach mutual agreement on the terms of the contract
How does the knowledge of a mistake by one party impact the validity of a contract?
If one party is aware of the mistake and proceeds with the contract, it may affect the validity of the contract
What is the legal consequence if a party to a contract is under a bona fide and reasonable mistake as to its contents?
The party will not be bound by the provisions of the contract.
Explain the scenario where a party is led to believe by the other party that the contract contains certain provisions that it actually does not include.
If a party relies on such misrepresentations, they will not be bound by the agreement.
What is the remedy for correcting mistakes in written contracts due to failure to indicate the common intention of the parties?
Mistake Rectification.
In the context of contract law, how can parties correct mistakes in written contracts?
By agreement or by performing as per the correct intention.
What legal concept refers to a situation where a party makes a mistake as to the terms, import, or effect of the contract at the time of its conclusion?
Legally recognizable mistake in the law of contract.
When will a party not be bound by the provisions of a contract according to the principle discussed in Dole South Africa (Pty) Ltd v Pieter Beukes (Pty) Ltd 2007?
When the party acts under a bona fide and reasonable mistake as to the contract's contents.
What is the consequence of a party laboring under a misapprehension as to the terms of a contract, based on the legal principle discussed?
The party may not be bound by the contract.
Why is it important for parties to ensure a correct indication of their common intention in written contracts?
To avoid unintentional failures in reflecting the agreed terms.
What is the significance of parties reaching consensus on the terms of a contract in avoiding legal disputes?
Consensus ensures clarity and mutual understanding of the contract terms.
In the context of contract law, what allows parties to correct errors in written contracts and align them with their true intentions?
Mistake Rectification.
Explore the concept of absence of consensus in contract law, focusing on the implications of mistakes made by contracting parties. Learn how mistaken beliefs about facts affecting a contract can invalidate it, despite parties thinking they have reached an agreement.
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