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Summary Full essay/notes on law of mistake

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Summary of 4 pages for the course Law at Aston (full essay/notes)

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The Great Peace decision on the doctrine of equitable rescission for
genuine mistake as proposed in the case, Solle v. Butcher. The approach
provided a legal method that remained effective. The case consisted of a
common or mutual mistake as to the decision in The Great Peace. The
leading judgment where the Lever Brothers had entered into contract to
end their term of employment with compensation. However, the
defendants had breached their contracts of employment, where they were
not aware of this. As a result, the contract was considered a common
mistake for both parties and The house of Lords held that the agreements
were not void for mistake.

How did the law change in Lever Bros Ltd?

The Lever Brothers argued that there was a breach of duty that was
implied in their employment contract. The court held that the contract
was not void and the mistake was not vital to the contract. Therefore, only
a mistake of the subject matter of the contract or the quality of an item
would void a contract completely. The mistake must be essential to the
identity of the contract. The court identified the mistake as a common
mistake.

Why did the law change in Solle v. Butcher?

Solle, the plaintiff was a tenant of the defendant Butcher. Before having
deciding the rent, they both assumed the house did not come with any
previous legislation that specified that if the landlord wants to charge
over, he must give notice. Solle, wanted to be compensated for the money
he had paid. The Plaintiff wants to be compensated for the money he has
paid. The doctrine of mistake is prevalent where the contract can be void?
Under the common law, a contract is void depending on the failure of a
specific condition. (5) A common mistake is where both parties hold the
same mistaken belief of the facts. The case, Bell v Lever Brothers Ltd,
established that a common mistake can void a contract if the mistake of
the subject matter was crucial to contract.

There are three different types of mistakes in contract law: unilateral
mistake, the mutual mistake and the common mistake. A unilateral
mistake is where one party is mistaken as to the terms or subject matter
in the contract. There are exceptions where a contract is void from
unilateral mistakes. For instance, one party relied on a statement of the
other party about a fact that the second party should have known about.
However, a party cannot be held liable by being given false information,
received in good faith with believing it was true , Roswell State Bank v.
Lawrence Walker Cotton Co.

There are two types of common mistake which can make a contract void.
matter at the time of the contract no longer exists. In the case, The Great
Peace Shipping Ltd v Tsavliris international Ltd (2001), the owners of the
ship wanted the defendants to recover the ship. The defendants were told

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April 2, 2021
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2020/2021
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