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Chapter

Cover Essential Cases: Contract Law

Shogun Finance Ltd v Hudson [2003] UKHL 62  

Essential Cases: Contract Law provides a bridge between course textbooks and key case judgments. This case document summarizes the facts and decision in Shogun Finance Ltd v Hudson [2003] UKHL 62. The document also includes supporting commentary from author Nicola Jackson.

Chapter

Cover Essential Cases: Contract Law 5e

Shogun Finance Ltd v Hudson [2003] UKHL 62  

Essential Cases: Contract Law provides a bridge between course textbooks and key case judgments. This case document summarizes the facts and decision in Shogun Finance Ltd v Hudson [2003] UKHL 62. The document also includes supporting commentary from author Nicola Jackson.

Chapter

Cover Contract Law

16. Mistake  

This chapter examines the effects of a mistake on the validity of a contract. A mistake may prevent parties from reaching agreement. First, a court may decide that no contract has been concluded where one party knows that the other is labouring under a mistake in relation to the terms of the agreement and fails to inform that other party of the mistake. Secondly, it may conclude that the terms of the offer and acceptance suffer from a latent ambiguity such that the parties cannot be said to have reached agreement. The third case in which a mistake may prevent the formation of a contract is where there has been a mistake as to the identity of the party who is said to be a party to the contract. The discussion then turns to the leading cases on common mistake, mistake in equity, and rectification. The chapter concludes by considering the non est factum defence, which can be invoked by someone who, through no fault of his own, has no understanding of the document that he has signed.

Chapter

Cover JC Smith's The Law of Contract

6. Identity of offeror and offeree  

This chapter considers situations where one party (A) makes an offer to another party (B) but a third party (C) purports to accept the offer made by A. If A makes an offer to B and B alone, that offer cannot be accepted by C. Whether an offer is restricted to B alone is a question of interpretation. If A makes a mistake as to the other party’s identity, no contract will be formed (or, as it is sometimes said, the contract will be void). If A makes a mistake as to the other party’s attributes (such as their creditworthiness) then a contract will be formed. However, that contract may be voidable as a result of a misrepresentation. Whether a contract is void or voidable is particularly important where third parties have acquired rights in the subject matter of a contract.

Chapter

Cover Contract Law Directions

8. Mistake  

Without assuming prior legal knowledge, books in the Directions series introduce and guide readers through key points of law and legal debate. Questions, diagrams and exercises help readers to engage fully with each subject and check their understanding as they progress. This chapter discusses the various ways of classifying mistakes including communication mistakes, mistakes of fact, common mistake and unilateral mistake. It then looks at the case law on mistaken identity and the distinctions between face-to-face and correspondence contracts. Finally, it looks at the restrictive rules on common mistake, including the difference between fundamental mistake and mistake as to quality, and their relationship with the doctrine of frustration and the demise of the category of equitable mistake.

Chapter

Cover Contract Law Directions

8. Mistake  

Without assuming prior legal knowledge, books in the Directions series introduce and guide readers through key points of law and legal debate. Questions, diagrams and exercises help readers to engage fully with each subject and check their understanding as they progress. This chapter discusses the various ways of classifying mistakes including communication mistakes, mistakes of fact, common mistake and unilateral mistake. It then looks at the case law on mistaken identity and the distinctions between face-to-face and correspondence contracts. Finally, it looks at the restrictive rules on common mistake, including the difference between fundamental mistake and mistake as to quality, and their relationship with the doctrine of frustration and the demise of the category of equitable mistake.