Law of Contract: Absence of Consensus due to Mistake

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What is the definition of mistake in a contractual sense?

Mistake in a contractual sense refers to when a contracting party acts under an incorrect impression regarding a 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

Define mutual mistake in the context of contract law.

Mutual mistake occurs when both parties are mistaken about each other's intentions.

What is the difference between unilateral mistake and mutual mistake?

Unilateral mistake involves one party being mistaken while the other is aware, whereas mutual mistake involves both parties being mistaken about each other's intentions. Signup and view all the answers

Explain what happens in a common mistake situation in a contract.

In a common mistake, the mistake is shared by all parties to the contract. Signup and view all the answers

When is a mistake considered irrelevant in a contract despite its occurrence?

A mistake is considered irrelevant if the mistaken party would have entered into the contract despite the mistake. Signup and view all the answers

What is the decisive question in a case of unilateral mistake according to Sonap Petroleum (SA) (Pty) Ltd v Pappadogianis 1992?

Did the party mislead the other party into believing that his declared intention represented his actual intention? Signup and view all the answers

In the case of Allen v Sixteen Stirling Investment (Pty) Ltd 1974, why did the court find the plaintiff's mistake to be iustus?

The plaintiff entered into the agreement in the bona fide belief that he was buying a different immovable property pointed out by the defendant's agents. Signup and view all the answers

According to Sonap Petroleum (SA) (Pty) Ltd v Pappadogianis 1992, what three-fold enquiry is usually necessary in cases of unilateral mistake?

Misrepresentation as to one party's intention, who made that representation, and if the other party was misled. Signup and view all the answers

What are the two possibilities considered in the last question postulated by Sonap Petroleum (SA) (Pty) Ltd v Pappadogianis 1992?

Whether the other party was actually misled and if a reasonable man would have been misled. Signup and view all the answers

In the case of Allen v Sixteen Stirling Investment (Pty) Ltd 1974, why did the plaintiff seek to declare the written agreement null and void?

Because the plaintiff believed he was buying a different immovable property than the one described in the sale agreement. Signup and view all the answers

What is the significance of a mistake being considered iustus in legal contexts?

It means the mistake was fair or reasonable. Signup and view all the answers

What type of mistake must touch the agreement in a material or fundamental respect?

Material mistake Signup and view all the answers

In what situations can a contract be rescinded or voidable due to improper consensus?

Misrepresentation, duress, undue influence, or commercial bribery Signup and view all the answers

What must parties have for a material mistake to be present?

Serious intention to contract, be of one mind as to material aspects, and be aware that all parties are of the same mind Signup and view all the answers

Give an example of a material aspect mistake related to the parties in the contract.

Mistakes regarding the parties to the contract Signup and view all the answers

What type of mistake involves errors related to material terms of the contract?

Mistake regarding material terms Signup and view all the answers

How does a non-material mistake impact the existence of a contract?

A non-material mistake does not exclude the actual agreement; the contract is voidable. Signup and view all the answers

What type of mistake was present in the case of Kok v Osborne & Another 1993?

Error in persona Signup and view all the answers

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 Signup and view all the answers

What set of questions did Davis AJ outline in Prins v Absa Bank Ltd. to consider a 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? Signup and view all the answers

In the context of mistake, what role does consensus play?

Consensus is necessary for an agreement to be valid Signup and view all the answers

How is dissensus caused by a mistake different from consensus?

Dissensus caused by a mistake indicates a lack of agreement due to an error, while consensus signifies mutual understanding Signup and view all the answers

What is the significance of identifying the party's intent in cases of mistake?

Identifying the party's intent is essential to determine if the mistake was induced fraudulently, negligently, or innocently Signup and view all the answers

What does it mean to seek rectification of a contract?

To seek rectification of a contract means to ask the court to rephrase the contract in order to accurately reflect the true mutual agreement of the parties. Signup and view all the answers

In what situation is rectification not available as a remedy?

Rectification is not available as a remedy when only one or some of the parties were under a misapprehension or mistaken impression. Signup and view all the answers

Does rectification create a new contract or amend an existing one?

Rectification does not create a new contract or amend an existing one; it merely corrects the written memorial of the agreement. Signup and view all the answers

Who may apply for rectification of a contract?

A party to an incorrectly recorded agreement may apply for rectification. Signup and view all the answers

Under what circumstances can one apply for rectification?

One can apply for rectification when the written contract fails to accurately express the true consensus of all parties involved. Signup and view all the answers

What does rectification aim to achieve in a contract dispute?

Rectification aims to ensure that the written document accurately reflects the true mutual agreement of the parties. Signup and view all the answers