Case Study Assignment 2022

Running Head: CASE STUDY
CASE STUDY
Name of the Student
Name of the University
Author’s Note

CASE STUDY2
Issue:
The issue in the case is whether there was a mistake.
The second issue in the case is what kind of mistake is there in the case.
Rule:
Mistake in a contract, is successfully proved can lead to the unenforceability of the
contract making it void ab initio or voidable at the option of the mistaken party. there are three
types of mistakes as recognized by the common law:
 Unilateral mistake: this means that one party to the contract has mistaken the terms and
condition of the contract and has acted upon it to discharge the duties1. In general un
derstanding, the unilateral mistake does not affect the validity of the contract. But the
exceptions lie where there has been a gross negligence, or the intentional mistake and
unconscionable mistake.
 Mutual Mistake: this means that both the parties have mutually mistaken the material fact
of the terms and conditions of the contract and has relied upon it for the discharge of their
contractual duties2.
 Common Mistake: this means that both the parties have made a mistaken belief of the
facts related to the terms and conditions of the contrac3t. However, it has been established
that the contract shall be held void only if the mistake of the subject matter renders the
fundamental identity of the contract as altered from what was intended by the parties4. Ry
1 Taylor vs. Johnson [1983] HCA 5
2 Raffles vs. Wichelhaus [1864] 2 Hurl & C 906.
3 Svanosio vs. McNamara [1956] HCA 55.
4 Bell vs. Lever Brothers Ltd [1931] UKHL 2.