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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?
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?
In the case of Raffle v. Wichelhause, what was the main reason the contract was deemed void due to mutual mistake?
In the case of Raffle v. Wichelhause, what was the main reason the contract was deemed void due to mutual mistake?
How is unilateral mistake different from mutual mistake in contract law?
How is unilateral mistake different from mutual mistake in contract law?
What does a party need to establish to prove a contract is void for unilateral mistake caused by fraudulent misrepresentation?
What does a party need to establish to prove a contract is void for unilateral mistake caused by fraudulent misrepresentation?
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Why did the buyer refuse to take delivery of the cotton in the Raffle v. Wichelhause case?
Why did the buyer refuse to take delivery of the cotton in the Raffle v. Wichelhause case?
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In what circumstance does unilateral mistake in contract law often lead to a dispute?
In what circumstance does unilateral mistake in contract law often lead to a dispute?
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What factor contributes to making a contract void for unilateral mistake?
What factor contributes to making a contract void for unilateral mistake?
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What does a party need to prove in a unilateral mistake dispute regarding fraudulent misrepresentation?
What does a party need to prove in a unilateral mistake dispute regarding fraudulent misrepresentation?
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What is crucial in proving a contract void for unilateral mistake resulting from fraudulent misrepresentation?
What is crucial in proving a contract void for unilateral mistake resulting from fraudulent misrepresentation?
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What distinguishes bilateral mistake from unilateral mistake in contract law?
What distinguishes bilateral mistake from unilateral mistake in contract law?
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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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Description
Explore a case study involving negligent misrepresentation in Kirimu Estate (UG) Ltd.v.K.G.Korde, where a lawyer provided a valuation far above market value without proper assessment. Learn about the consequences and legal implications of negligent misrepresentation.
