Negligent Misrepresentation in Kirimu Estate (UG) Ltd.v.K.G.Korde

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Questions and Answers

What kind of mistake is characterized by a situation where one party is mistaken as to the identity of the other party, induced by fraudulent misrepresentation?

  • Common mistake
  • Unilateral mistake (correct)
  • Bilateral mistake
  • Mutual mistake

In the case of Raffle v. Wichelhause, what was the main reason the contract was deemed void due to mutual mistake?

  • Different shipment dates
  • Two ships with the same name at Bombay port (correct)
  • Incorrect shipping port
  • Ambiguity in contract terms

How is unilateral mistake different from mutual mistake in contract law?

  • In unilateral mistake, both parties are aware of the mistake.
  • Mutual mistake requires fraudulent intent.
  • Unilateral mistake involves fraudulent misrepresentation. (correct)
  • Mutual mistake involves only one party being mistaken.

What does a party need to establish to prove a contract is void for unilateral mistake caused by fraudulent misrepresentation?

<p>That they dealt with someone other than who they intended to deal with, and that person was aware of it. (C)</p> Signup and view all the answers

Why did the buyer refuse to take delivery of the cotton in the Raffle v. Wichelhause case?

<p>The buyer intended to receive cotton from a different ship. (A)</p> Signup and view all the answers

In what circumstance does unilateral mistake in contract law often lead to a dispute?

<p>When the mistaken party takes goods without knowing the fraud. (B)</p> Signup and view all the answers

What factor contributes to making a contract void for unilateral mistake?

<p>The fraudulent intent of one party. (B)</p> Signup and view all the answers

What does a party need to prove in a unilateral mistake dispute regarding fraudulent misrepresentation?

<p>Dealing with someone other than who they intended, and that person's awareness of this fact. (A)</p> Signup and view all the answers

What is crucial in proving a contract void for unilateral mistake resulting from fraudulent misrepresentation?

<p>You must prove you dealt with a different person than you intended and that person was aware of it. (A)</p> Signup and view all the answers

What distinguishes bilateral mistake from unilateral mistake in contract law?

<p>Bilateral mistake occurs when both parties are mistaken about each other's identity. (B)</p> Signup and view all the answers

Flashcards

Unilateral mistake

One party is mistaken about the identity of the other party due to fraudulent misrepresentation.

Raffle v. Wichelhause main reason

The contract was deemed void because there were two ships with the same name at Bombay port, leading to confusion about which shipment was intended.

Unilateral vs. Mutual Mistake

Involves fraudulent misrepresentation by one party, while mutual mistake involves both parties being mistaken.

Proving Unilateral Mistake (Fraud)

That they dealt with someone other than who they intended to deal with, and that person was aware of it.

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Raffle v. Wichelhause buyer's refusal reason

The buyer intended to receive cotton from a different ship than the one that delivered it.

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Unilateral Mistake Dispute Circumstance

When the mistaken party takes goods without realizing the fraud involved.

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Key Factor: Unilateral Mistake

The intention of only one party to commit fraud.

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Prove Unilateral Mistake (Fraud)

Dealing with someone other than intended, and their awareness.

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Crucial Proof: Unilateral Mistake

Proving you dealt with a different person than intended and that person knew.

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Study Notes

Loss of Financial Nature

  • Kirimu Estate (UG) Ltd. v. K.G. Korde: plaintiff company sued defendant lawyer for negligent misrepresentation, resulting in a loss of financial nature due to overvaluation of land.

Types of Mistakes

  • Two types of mistakes: mistake of law and mistake of fact
  • Mistake of law: does not affect a contract, except for mistake of foreign law
  • Mistake of fact: affects contractual relationships, an erroneous assumption or misapprehension of a fact or factual situation

Operative Mistakes

  • Common mistake: both parties make the same mistake about the existence or ownership of the subject matter
  • Common mistake renders a contract void in two circumstances:
    • Cases of Res Exinta: subject matter does not exist (e.g., Couturier V. Hastle, Lessie Anderson V. Vallabdos Khalidas Company)
    • Cases of Res Sua: parties are mistaken about the ownership of the subject matter (e.g., Bingham V. Bingham)

Mutual Mistake

  • A mistake about the subject matter of the contract
  • Arises when parties misunderstand each other or are at cross-purposes, resulting in a lack of consensus ad idem
  • Example: Raffle V. Wichelhause, where parties misunderstood the identity of the ship carrying the cotton

Unilateral Mistake

  • A mistake about the identity of one of the parties to the contract
  • Only one party is mistaken, and the mistake is induced by the other party
  • Arises when a fraudulent person misrepresents their identity to obtain goods or favorable terms
  • Original owner is entitled to the goods or their value by establishing that the contract was void for unilateral mistake

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