Law of Contract: Absence of Consensus and Mistake
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Questions and Answers

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?

<p>Parties must have a serious intention to contract, be of one mind on material aspects, and be aware of each other's agreement.</p> Signup and view all the answers

What happens if one or more of the requirements for parties in a contract are lacking?

<p>It constitutes a material mistake.</p> Signup and view all the answers

Can a contract be rescinded if consensus was reached through misrepresentation, duress, undue influence, or commercial bribery?

<p>Yes, the contract is voidable in such cases.</p> Signup and view all the answers

What are examples of material aspects that can lead to a material mistake in a contract?

<p>Mistakes regarding parties to the contract and mistakes regarding material terms.</p> Signup and view all the answers

What is the definition of mistake in a contractual sense?

<p>Where a contracting party acts while under an incorrect impression regarding some fact that relates to or affects the contract between the parties.</p> Signup and view all the answers

What is the main consequence of a contract being based on a mistaken belief?

<p>The aggrieved party may want to opt out of the contract or claim relief from the other party.</p> Signup and view all the answers

Define unilateral mistake in the context of contract law.

<p>Unilateral mistake occurs when only one party is mistaken and the other party is aware of the mistake.</p> Signup and view all the answers

What is the key characteristic of mutual mistake in contract law?

<p>Both parties are mistaken about each other's intention, and neither party is aware of the other's mistake.</p> Signup and view all the answers

Explain the concept of common mistake in contract law.

<p>Common mistake occurs when the mistake is shared by all parties to the contract.</p> Signup and view all the answers

What is the significance of an irrelevant mistake in a contract?

<p>If the mistaken party would have entered into the contract despite the mistake, it is regarded as irrelevant.</p> Signup and view all the answers

What condition must be met for a mistake to be considered influential in a party's decision to conclude a contract?

<p>The mistake must be shown to have influenced a party's decision to conclude the contract.</p> Signup and view all the answers

What type of mistake does not affect consensus?

<p>Non-material mistake</p> Signup and view all the answers

In which case does a mistake arise due to a party being unaware of the contents of the obligations they wish to create?

<p>Lack of understanding of legal consequences of a contractual provision</p> Signup and view all the answers

What type of mistake involves a misunderstanding regarding the reason or motive for entering into an agreement?

<p>Error in motive</p> Signup and view all the answers

What is the classification of mistakes based on their impact on the consensus?

<p>Material/non-material mistakes</p> Signup and view all the answers

Which case illustrates a mistake related to the true nature of the contract?

<p>Khan v Naidoo 1989 (3) SA 724 (N)</p> Signup and view all the answers

What is the term used for a mistake regarding the law relating to some aspect of the transaction?

<p>Error iuris</p> Signup and view all the answers

Name one of the types of mistakes that can relate to the subject matter of the contract.

<p>Mistake re the identity of one of the parties to the contract</p> Signup and view all the answers

What is the legal term used to describe a mistake in identifying one of the parties involved in a contract?

<p>Error in persona</p> Signup and view all the answers

According to Venter v Credit Guarantee Insurance Corporation of Africa Ltd., when is error in persona considered material?

<p>When the identity of a party is of vital importance to the mistaken party</p> Signup and view all the answers

In the context of contract law, what is the significance of consensus?

<p>Consensus is essential for the formation of a valid contract</p> Signup and view all the answers

What are the four questions outlined by Davis AJ in Prins v Absa Bank Ltd. to consider in cases of mistake?

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

What is the role of mistake in causing dissensus in a contract?

<p>Mistake can lead to dissensus by creating a disagreement or lack of understanding between the parties</p> Signup and view all the answers

Explain the concept of 'absence of consensus' in the context of contract law.

<p>Absence of consensus refers to situations where the parties do not reach mutual agreement on the terms of the contract</p> Signup and view all the answers

How does the knowledge of a mistake by one party impact the validity of a contract?

<p>If one party is aware of the mistake and proceeds with the contract, it may affect the validity of the contract</p> Signup and view all the answers

What is the legal consequence if a party to a contract is under a bona fide and reasonable mistake as to its contents?

<p>The party will not be bound by the provisions of the contract.</p> Signup and view all the answers

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.

<p>If a party relies on such misrepresentations, they will not be bound by the agreement.</p> Signup and view all the answers

What is the remedy for correcting mistakes in written contracts due to failure to indicate the common intention of the parties?

<p>Mistake Rectification.</p> Signup and view all the answers

In the context of contract law, how can parties correct mistakes in written contracts?

<p>By agreement or by performing as per the correct intention.</p> Signup and view all the answers

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?

<p>Legally recognizable mistake in the law of contract.</p> Signup and view all the answers

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?

<p>When the party acts under a bona fide and reasonable mistake as to the contract's contents.</p> Signup and view all the answers

What is the consequence of a party laboring under a misapprehension as to the terms of a contract, based on the legal principle discussed?

<p>The party may not be bound by the contract.</p> Signup and view all the answers

Why is it important for parties to ensure a correct indication of their common intention in written contracts?

<p>To avoid unintentional failures in reflecting the agreed terms.</p> Signup and view all the answers

What is the significance of parties reaching consensus on the terms of a contract in avoiding legal disputes?

<p>Consensus ensures clarity and mutual understanding of the contract terms.</p> Signup and view all the answers

In the context of contract law, what allows parties to correct errors in written contracts and align them with their true intentions?

<p>Mistake Rectification.</p> Signup and view all the answers

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