Commercial Law Assignment: Mistake in Contract Law Analysis

This assignment analyzes two case studies related to commercial law, focusing on the concept of mistake in contract law. The first case examines whether an individual can hold a supermarket liable for injuries sustained due to using a curtain rod as a shower rod, exploring the principles of mutual mistake. The second case investigates whether an individual can recover funds stolen from his account after refusing to install antivirus software on his newly purchased computer, illustrating the concept of unilateral mistake. The assignment outlines the issues, relevant rules, and applications of contract law principles, culminating in conclusions for each case. It addresses various types of mistakes, including common, mutual, and unilateral mistakes, and references case law to support its analysis.

Running head: COMMERCIAL LAW
Commercial Law
Name of the Student
Name of the University
Author note

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Table of Contents
Question 1........................................................................................................................................2
Issue.............................................................................................................................................2
Rules............................................................................................................................................2
Application..................................................................................................................................3
Conclusion...................................................................................................................................5
Question 2........................................................................................................................................6
Issue.............................................................................................................................................6
Rules............................................................................................................................................6
Application..................................................................................................................................8
Conclusion...................................................................................................................................9
Reference.......................................................................................................................................11

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Question 1
Issue
According to the case study, the issue has arises that whether John can blame the
attendant of the super market for his injury?
Rules
According to the case study, John has purchased the curtain rod from the super market by
his own and the shop attended had directs him to find the curtain rod which he will use those as
shower rod. However he injured in his bathroom due to the fall in the bathroom and now he is
blaming the curtain rod and attendant’s advice. It is a case of mistake under the Contract Law1.
A mistake is a complex area of contract law. Mistakes only recognized when in a contract
a party has mistakenly escape contractual obligation which is also a mistakes of fundamental.
When the party who enters in the contract has a false assumption then it will recognize as a
mistake of the contract2. Here mistakes occur due to some assumptions by self induced or
spontaneous. There is no misrepresentation or misleading deceptive contract in the mistakes by
the parties3.
In the case of Bell v Lever Brothers Ltd4 the court has found the common mistakes
which were the reason of void the contract and there has been a sufficient subject matter of
mistakes which can make the contract impossible5.
1 McKendrick, E., 2014. Contract law: text, cases, and materials. Oxford University Press (UK).
2 Poole, Jill. Textbook on contract law. Oxford University Press, 2016.
3 Knapp, Charles L., Nathan M. Crystal, and Harry G. Prince. Problems in Contract Law: cases and materials.
Wolters Kluwer Law & Business, 2016.
4 Bell vs. Lever Brothers Ltd [1932] AC 161
5 Poole, Jill. Textbook on contract law. Oxford University Press, 2016.

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In another case Solle v Butcher6, the court has added several requirements where the
common mistakes have occurred due to some equity and represent the common mistakes. In
Great Peace Shipping Ltd v Tsavliris Salvage (International) Ltd7 case the court has equally
criticized the common mistakes for not having sufficient fundamental renders of the contract and
again the contract has been void8.
Famous case is Roswell State Bank vs. Lawrence Walker Cotton Co.9 where the
common Mistakes of contract have briefly described. In this case it has been found that the bank,
the company and the processing form all of them held liable by the plaintiff but the court has not
found any liability of them for the false information provided by a trusted customer who drew an
unauthorized cashier check. In another case Petelin vs. Cullen High Court of Australia
(1975)10 it has been found that the mistaken of contract has been occurs on the ground of non est
factum11.
Therefore according to the case study John was making the allegations against the faulty
curtain rod and attendance as whites but he has own ask for the curtain rod for the use in shower
rod in the bathroom. However it is referred to the mistakes of fact12.
Application
The mistake is the erroneous belief where the certain facts are recognizing as truth. It is a
part of the contract law where defense can be are good or it may raise some question regarding
the contract agreement between the parties and when the facts are being found as void ab initio
6 Solle vs. Butcher 1950 1 KB 671.
7 Great Peace Shipping Ltd vs. Tsavliris Salvage (International) Ltd 2003 QB 679
8 Fried, Charles. Contract as promise: A theory of contractual obligation. Oxford University Press, USA, 2015.
9 Roswell State Bank vs. Lawrence Walker Cotton Co. 240 P.2d 1143 (1952) 56 N.M. 107
10 Petelin v Cullen High Court of Australia (1975) 132 CLR 355
11 Knapp, Charles L., Nathan M. Crystal, and Harry G. Prince. Problems in Contract Law: cases and materials.
Wolters Kluwer Law & Business, 2016.
12 McKendrick, E., 2014. Contract law: text, cases, and materials. Oxford University Press (UK).

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or voidable then an equitable remedy can be discussed or provided by the court13. It has been
found in the common law of contract where it is known as the common mistakes. In the mistakes
the parties have the right to escape those contractual obligations where mistake also recognized
as a fundamental right of the contract law. There several kind of mistakes and we found where
the remedies have limited circumstances the mistakes are found in various form like common
mistake mutual mistake unilateral mistake and non est factum14.
The common mistakes recognized when both of the parties in the agreement have
mistaken the same facts15. Find a common mistake occurs it will also provide remedies as per the
equity remedies of recession or ratification which are available for the recognized mistakes.
The mutual mistakes recognized when the parties have mistaken different facts and the
legal position is unclear finding then the enforceable of that uncertainty really on mistakes as a
separate cause of action. Sometimes mutual mistakes also treated as unilateral mistakes with
different issues by the parties of the agreements.
The unilateral mistakes are other common mistakes of the contract law. It only
recognized when one party of the agreement has been mistakenly except some facts of the
contract where is another party didn’t accept the recognize facts of the mistakes. However there
must have improper contacts on the part of the unmistaken contacts where the party won to
prevent the mistaken.16 Therefore in unilateral mistakes some misleading conduct also involved
where the court can provide separate and superior remedies and the remedies will be important
actionable mistakes which exist in recession or rectification17.
13 Poole, Jill. Textbook on contract law. Oxford University Press, 2016.
14 McKendrick, E., 2014. Contract law: text, cases, and materials. Oxford University Press (UK).
15 Knapp, Charles L., Nathan M. Crystal, and Harry G. Prince. Problems in Contract Law: cases and materials.
Wolters Kluwer Law & Business, 2016.
16 Fried, Charles. Contract as promise: A theory of contractual obligation. Oxford University Press, USA, 2015.
17 Poole, Jill. Textbook on contract law. Oxford University Press, 2016.

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Another mistake is non est factum which where the parties have mistakenly establish
some nature of the document without no fault or neglect by their own which was unable to
understand or fill the significance of the documents18. Therefore according to the case study John
has mistakenly approaches the facts where he want to established the allegation against the
attendance advice and the faulty curtain rod19. When he brought the curtain rod for using it as
shower rod, it has been his mistakes from his side because curtain rod only used for the curtains
and the shower rods has different uses and another fact can be recognized here when the
attendance of the shop had heard about how John will use the curtain rod he should have warned
him about the consequences20. Therefore mutual mistakes have been occurring. Both of the party
are liable in this case where they mistakenly take the facts and liable for the damages. Therefore
no compensation can be provided for the common mistakes they have established21.
Conclusion
Therefore according to the case study, it can be concluded that both of the parties are
liable for the mistake in fact that the curtain rod can be used as shower rods but the facts is not
true which cause the damages to John22. In this case John and the attendance of the shop both are
liable for their mistakes and causes the damages to John.
18 Fried, Charles. Contract as promise: A theory of contractual obligation. Oxford University Press, USA, 2015.
19 Poole, Jill. Textbook on contract law. Oxford University Press, 2016.
20 Knapp, Charles L., Nathan M. Crystal, and Harry G. Prince. Problems in Contract Law: cases and materials.
Wolters Kluwer Law & Business, 2016.
21 McKendrick, E., 2014. Contract law: text, cases, and materials. Oxford University Press (UK).
22 Knapp, Charles L., Nathan M. Crystal, and Harry G. Prince. Problems in Contract Law: cases and materials.
Wolters Kluwer Law & Business, 2016.

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Question 2
Issue
According to the case study the issue is whether Andrew can able to proceedings against the
parties who have theft his money and get the compensation?
Rules
Andrew who is a mechanic has recently bought his first household computer and from his local
pub the technicians sets of everything for his computer when the technician has asked him about
installing anti-virus software he refused to install it because he think without antivirus is
computer programs are all protected23. However while he was downloading something and his
computer through the web browser several advertisements has popped up the street and next day
he found that he is $5,000 has been missing and now he want to get back his money whoever
theft that24.
A mistake is a complex area of contract law. Mistakes only recognized when in a contract
a party has mistakenly escape contractual obligation which is also a mistakes of fundamental.
When the party who enters in the contract has a false assumption then it will recognize as a
mistake of the contract. Here mistakes occur due to some assumptions by self induced or
spontaneous25. There is no misrepresentation or misleading deceptive contract in the mistakes by
the parties26.
23 Knapp, Charles L., Nathan M. Crystal, and Harry G. Prince. Problems in Contract Law: cases and materials.
Wolters Kluwer Law & Business, 2016.
24 McKendrick, E., 2014. Contract law: text, cases, and materials. Oxford University Press (UK).
25 Knapp, Charles L., Nathan M. Crystal, and Harry G. Prince. Problems in Contract Law: cases and materials.
Wolters Kluwer Law & Business, 2016.
26 Poole, Jill. Textbook on contract law. Oxford University Press, 2016.

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However in this case it can be stated that Andrew has mistake the fact and Express his
believe that there will be no harm will happen but in spite of having a word about the fact of
harm he refused to take precautions and cause damages it is a case of unilateral mistake where
one party has mistaken the aspects of the contract but the other party is not27.
In the case of Webster v Cecil (1861)28 it has been found that the defendant refused sell
his property to the plaintiff for $2,000 Where are mistaken cancellation has been occurred in a
letter and later he offered to sell that same property in $1,250. How were the plenty accept the
offer where defendant has refused to complete the day here and unilateral mistakes has been
placed due to some facts where one party is mistaken the fact where does another party is not29.
In another case King's Norton Metal v Edridge Merret (1897)30 it has been found that Will has
ordered some goods from a company which name was noted on a paper which was printed its
name and when he paid the price by a check on that same name of the company, it received
another letter where a request has been send for the price of the goods31. Therefore the company
again send the letter regarding the price where will is ordered for another goods. Therefore a
confusion has been placed and when Will is received the goods he fraudulently sold them to
another person so the company brought an legal action against Will for recover the damages in
spite of the conversion of the goods. In this case the court has been found that a false
presentation has been constructed where it has give a good title to a Bona Fide purchaser for
value. Therefore a unilateral mistake has been occurring in this case32.
27 McKendrick, E., 2014. Contract law: text, cases, and materials. Oxford University Press (UK).
28 Webster v Cecil (1861) 30 Beav 62
29 Poole, Jill. Textbook on contract law. Oxford University Press, 2016.
30 King's Norton Metal v Edridge Merret (1897) TLR 98
31 Fried, Charles. Contract as promise: A theory of contractual obligation. Oxford University Press, USA, 2015.
32 Knapp, Charles L., Nathan M. Crystal, and Harry G. Prince. Problems in Contract Law: cases and materials.
Wolters Kluwer Law & Business, 2016.

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The another case Taylor v Johnson (1983)33, the unilateral mistake facts have been
found that the court has been stated that the contract is provided the facts of void ab initio where
one party enters into the contract with a serious mistake of the existence of a fundamental terms
where another party is a aware of the knowledge of the mistakes therefore the contract has been
voidable34.
When a party enters in written agreement with under serious mistake which also the
existence of a fundamental term it is an equity of the contract where the other party is a aware
about the consequences effects which produce mistakes or miss apprehensions of the subject
matter then it will represent the unilateral mistakes of the contract35.
Application
The fact of the case study is Andrew is a mechanic who brought the computer and after the
technician of the local pub has install everything in the computer, he also asked Andrew about
buying the anti-virus software for the protection of the computer which helps computer to
infected by the virus from the hackers36. However, after offering the anti-virus software to sell in
a discount for him and Andrew again stated that he will not spend $300 for the magic on the
screen of anti-virus and he mistaken the fact that the little things will not hamper his computer37.
Here, the technician who was setting the computer has aware about the importance of the
installation of antivirus software in the computer because it will protect and provide security to
the computer from every outside hacker. However without installation of the anti-virus Andrew
operating the computer and next day when he browse for downloading documents he could not
33 Taylor v Johnson (1983) 151 CLR 422
34 McKendrick, E., 2014. Contract law: text, cases, and materials. Oxford University Press (UK).
35 Knapp, Charles L., Nathan M. Crystal, and Harry G. Prince. Problems in Contract Law: cases and materials.
Wolters Kluwer Law & Business, 2016.
36 Fried, Charles. Contract as promise: A theory of contractual obligation. Oxford University Press, USA, 2015.
37 Poole, Jill. Textbook on contract law. Oxford University Press, 2016.

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able to understand the following links which affects the computer screen flash and blinks and
few minutes later it close itself. Again on the next day when he open the computer the
advertisements pop up all over the screen and after some time when he checked the bank details
he found that $5,000 was missing. Therefore he informed to the bank for the theft and freezes all
the funds38. Here it can be stated that Andrew not believes on the facts of installing antivirus
where the technician has already warned him about the consequences39. It is a case of unilateral
mistake where one party of a contract has mistaken in the terms or subject matter where another
party has the knowledge about the mistakes. However unilateral mistakes never make the
contract void because it has been related with the Caveat Emptor which gives the awareness to
the buyer and Caveat Venditor who make the awareness to the seller. Under the common law
unilateral mistake is one of the common mistake where provide a remedy but the equity will
interval more frequently where some improper contacts are required on the part of the mistaken
party and seeks to prevent the other becoming aware of the mistaken40.
Therefore in unilateral mistakes some misleading conduct also involved where the court
can provide separate and superior remedies and the remedies will be important actionable
mistakes which exist in recession or rectification41.
Conclusion
According to the case facts it can be concluded that the Andrew has mistaken the facts while the
technician has the knowledge about the mistakes. According to the Cyber Law he can start to
process about the theft of his money but there is no assurance about that whether he will able to
38 Fried, Charles. Contract as promise: A theory of contractual obligation. Oxford University Press, USA, 2015.
39 Knapp, Charles L., Nathan M. Crystal, and Harry G. Prince. Problems in Contract Law: cases and materials.
Wolters Kluwer Law & Business, 2016.
40 Poole, Jill. Textbook on contract law. Oxford University Press, 2016.
41 McKendrick, E., 2014. Contract law: text, cases, and materials. Oxford University Press (UK).

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get back the money. The contract is not void because in the unilateral mistakes both parties has
the knowledge about the facts while one is mistaken the facts while other party has not. However
in the exception cases it can be voidable when the one party is mistaken the facts and other will
know that mistaken will occur by the first party42.
42 Knapp, Charles L., Nathan M. Crystal, and Harry G. Prince. Problems in Contract Law: cases and materials.
Wolters Kluwer Law & Business, 2016.

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Reference
Andrews, Neil. Contract law. Cambridge University Press, 2015.
Bell vs. Lever Brothers Ltd [1932] AC 161
Fried, Charles. Contract as promise: A theory of contractual obligation. Oxford University Press,
USA, 2015.
Great Peace Shipping Ltd vs. Tsavliris Salvage (International) Ltd 2003 QB 679.
King's Norton Metal v Edridge Merret (1897) TLR 98
Knapp, Charles L., Nathan M. Crystal, and Harry G. Prince. Problems in Contract Law: cases
and materials. Wolters Kluwer Law & Business, 2016.
McKendrick, E., 2014. Contract law: text, cases, and materials. Oxford University Press (UK).
Petelin v Cullen High Court of Australia (1975) 132 CLR 355
Poole, Jill. Textbook on contract law. Oxford University Press, 2016.
Roswell State Bank vs. Lawrence Walker Cotton Co. 240 P.2d 1143 (1952) 56 N.M. 107
Solle vs. Butcher 1950 1 KB 671.
Taylor v Johnson (1983) 151 CLR 422
Webster v Cecil (1861) 30 Beav 62