The Law of Contract: Absence of Consensus and Mistake

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What type of mistake does not affect consensus according to the text?

Error in motive (correct)

Error iuris

Mistake as to the party's reasons for entering into the contract

Mistake re the identity of one of the parties to the contract

In which case is a mistake considered material?

Mistake re an attribute or characteristic of the subject matter of the contract

Error in negotio

Mistake as to the law relating to some aspect of the transaction

Lack of understanding of legal consequences of a contractual provision (correct)

What is 'error iuris' as mentioned in the text?

Error in persona

Mistake re reason/motive for the mistaken party entering into an agreement

Mistake as to the law relating to some aspect of the transaction (correct)

Mistake re an attribute or characteristic of the subject matter of the contract

Which type of mistake relates to an error in negotio?

Error in substance (B) Signup and view all the answers

What type of mistake is defined by a lack of understanding of legal consequences?

Lack of understanding of legal consequences of a contractual provision (A) Signup and view all the answers

What is the primary focus when discussing the concept of mistake in a contractual sense?

The importance of consensus between contracting parties (C) Signup and view all the answers

In which case does a mistake relate to the true nature of the contract?

Mistake re the true nature of the contract (C) Signup and view all the answers

In a situation of unilateral mistake, how is it classified and what distinguishes it from mutual mistake?

Classified as one-sided, with the other party being aware of the mistake (B) Signup and view all the answers

What defines a situation of dissensus in the context of a contract?

One party remaining silent about the mistake (B) Signup and view all the answers

How is a common mistake differentiated from an irrelevant mistake in contract law?

A common mistake involves all parties sharing the same mistake; an irrelevant mistake does not impact the contract. (A) Signup and view all the answers

What distinguishes a unilateral mistake from a common mistake in a contract?

In a unilateral mistake, only one party is mistaken, while in a common mistake all parties share the same mistaken belief. (C) Signup and view all the answers

Why is it important for a mistaken party to show that the mistake influenced their decision to conclude a contract?

To establish that the mistaken belief affected their willingness to enter into the contract (B) Signup and view all the answers

Why was Shepherd not bound by the provision to pay a commission to the agency?

He failed to read the document he signed and was misled by the advertisement. (D) Signup and view all the answers

What mistake led to Shepherd not being bound by the provision in the contract?

He thought the contract matched the advertisement but it did not. (A) Signup and view all the answers

Why did Shepherd believe he was entitled to rely on the mistake induced by the advertisement?

The agency failed to highlight the conflict between the contract and their advertisement. (A) Signup and view all the answers

Why did Shepherd think he would not be liable for commission if a sale took place?

He believed that only sales resulting from the agency's efforts would incur commission. (D) Signup and view all the answers

What did the Court find regarding Shepherd's liability for commission?

Shepherd was not bound by the provision requiring him to pay commission. (D) Signup and view all the answers

Why was Shepherd found entitled to rely on the mistake induced by the advertisement despite it being his responsibility to read documents he signed?

Shepherd's mistaken belief was directly caused by the agency's advertisement and lack of clarification. (B) Signup and view all the answers

What does it mean when a person applies to court to 'rectify' a contract?

He is asserting that the written contract does not accurately reflect the true intention of the parties. (B) Signup and view all the answers

In what scenario is rectification not available as a remedy?

When only some of the parties were under a misapprehension. (C) Signup and view all the answers

How does rectification affect a contract according to the text?

It corrects the written memorial of the agreement without changing the agreement itself. (A) Signup and view all the answers

Who can apply for rectification of an incorrectly recorded agreement?

Any party, as long as they prove that the agreement was incorrectly recorded. (C) Signup and view all the answers

What does rectification aim to do in relation to a written contract?

Correctly express the true mutual agreement of the parties at the time of entering into the agreement. (B) Signup and view all the answers

When can rectification be requested as per the text?

Only when all parties agree on the need for correction due to a misrepresentation. (C) Signup and view all the answers

In a case of unilateral mistake, what is the decisive question according to the South African Appellate Division?

Whether the common intention expressed conforms to the actual intention (C) Signup and view all the answers

According to Allen v Sixteen Stirling Investment (Pty) Ltd, what was the court's finding regarding the plaintiff's mistake?

It was a justifiable mistake (D) Signup and view all the answers

What is usually necessary in a three-fold enquiry related to unilateral mistake?

Determining if there was a misrepresentation as to one party's intention (C) Signup and view all the answers

Which factor postulates two possibilities in assessing unilateral mistake?

If the other party was actually misled (A) Signup and view all the answers

What did the Plaintiff seek in Allen v Sixteen Stirling Investment (Pty) Ltd?

An order declaring an agreement null and void (A) Signup and view all the answers

What was the Plaintiff's belief when entering into the agreement of sale in Allen v Sixteen Stirling Investment (Pty) Ltd?

That he was buying an immovable property described in the sale agreement (A) Signup and view all the answers