Mistake contract law notes pdf

Apr 26, 2015 the court found that the mistake was not important enough to render the contract void at common law. Unilateral mistakes unilateral mistake befalls when one party to an agreement is misguided as to the terms contained in an agreement. The indian contract act, 1872 icai knowledge gateway. If you complete this module successfully you will understand the main doctrines, concepts and principles of contract law, and you should be able to. This is different to when a contract becomes voidable, which will be explored within this chapter. There are three common mistakes in contract law namely unilateral, mutual, and common mistakes. Inconsistent case law on this, and everybody thought shogun finance v hudson 2003 would clear this up but it did not. The latin maxim ignorantia juris non excusat means that ignorance of the law is no excuse. The indian contract act consists of the following two parts. Llb bachelor of legislative law course is the most common undergraduate course of legal law education offered by many law colleges and universities in india. Sep 16, 2012 contract law i revision study notes for ll. Mistake is a remedy which can arise either through the common law or equity, however, the decision in great peace shipping ltd v tsavliris salvage international ltd 2003 qb 679 has limited mistake mostly to the common law. Mistake as to the existence of a product subject matter 81 where the subject matter ceases to exist 81 mistake as to the terms of the contract 81 mistake as to title 81 mistake as to law 81 common mistake equity 82 rescission 82.

Elements of the law of contract 1 introduction and general principles page 3 1. In contract law, a mistake is an erroneous belief, at contracting, that certain facts are true. B first year unit i introduction to the indian contract act, 1872 a contract may be defined as a legally binding agreement or, in the words of sir frederick pollock. It consists of only one contract under which indemnifier promises to pay in the event of certain loss. The indian contract act,1872 states two kinds of mistakes. Introduction overview the law of contract a is a selfstanding semester course that counts as a credit in the faculty of law in the llb2, as well as comprising one of the six component courses. Unilateral mistakes occur often than any other mistake. A contract is an agreement giving rise to obligations which are enforced or recognised by law. A mistake as to the facts of a case can operate to avoid a contract.

Based upon equitable principle, a court may do on of the 3 things. This document is highly rated by clat students and has been viewed 55256 times. A common mistake in contract law is one shared by both parties to the contract. In that context, a contract may be described as an agreement that the law the courts will enforce. Thus a void contract is one which cannot be enforced by a court of law. Also brief about english law indian law in this context. The contract of indemnity is made to protect the promise against some likely loss. The default position is that common mistake will not invalidate the contract, unless the mistake renders performance impossible. Here the contract becomes void due to the impossibility of performance of the. Conduct post contract can be informative, in showing that the parties thought a contract was made or wasnt, but cant tell us what happened at the time of the agreement could lead to mischief, contract cannot be modified by subsequent actions what kind of remedy might there be for this situation.

Performance and discharge 167 performance 169 discharge by agreement 172 discharge by breach 174 discharge by frustration 176 remedies for breach of contract 182 8 the sale of goods 1. It must not be taken as a substitute for reading the texts, cases, statutes and journals. The doctrine of mistake in the law of contract the jet. This is a well put together summary of chapter 9 mistakes in contracts for contract law classes.

I formation of a contract ii contents of a contract iii the end of a contract i formation of a contract 1. English contract law has long struggled to understand the effect of a fundamental common mistake in contract formation. Apr 23, 2020 contract of law notes clat notes edurev is made by best teachers of clat. A mistake is an incorrect understanding by one or more parties to a contract. If the common law accepts that a mistake is operational, then contract is void ab initio. The english courts approach to the doctrine of consideration is artificial since it has very little to do with the parties agreement.

This notion of enforceability is central to contract law. Pdf contract law notes, ebook free download for llb students. Apr 27, 2016 it must be expressly evident to an objective man that the reason for entering into the contract was because of the alleged mistake. A mistake as to quality is only capable of rendering a contract void where the mistake is as to the existence of some quality which renders the subject matter of the contract essentially different to that what it was believed to be. Basic principles of english contract law introduction this guide is arranged in the following parts. The liability of the indemnifier in a contract of indemnity is a primary one. The law of mistake refers to where both parties have entered a contract under the same fundamental mistake, which will render the contract void as if it never existed. Identify and explain appropriate remedies for breach of contractual obligations. Hi fellow law students, i am sharing pdf notes, book and ebook for the subject contract law for llb and ba. A promise or set of promises which the law will enforce. Mistake 144 misrepresentation 151 undue influence 153 void and illegal contracts 157 7 contract law 3. The general principals of the law of contract are contained in sections 1 to 75 of the indian contract act. Where relief is not available in common law because of some common mistake does not mean that the irish law will not grant relief at all. Contract law revision essential elements to a contract.

On studocu you find all the study guides, past exams and lecture notes for this module. Apr 17, 2018 mistake as to the existence of a material fact. You may find the table of contents to be a quick and useful overview of the law to be applied. A mistake, successfully raised, will result in a court order declaring the contract void setting it aside ab initio at common law or voidable in the case of equity. Who is competent to contract discuss the law relating to minors agreement in india, with case laws. A contract is not by voluntary consent if either party or parties had been induced to enter into the contract under duress. There is in my view a real danger that if a general principle of good faith were established it would. Section 2h of indian continue reading class notes on contract law unit i 1st sem 3 year ll. In common law the contract is void if there is common mistake. A change in the law is imperative to ensure clarity in the law and to stop a slavish adherence to the neoclassical theory of contract law. Welcome to the fifth lesson of this module guide mistake. Contract law notes, cases, and past papers digestible notes.

It must relate to a matter of existing fact or law 1 and can affect the contract in two basic. It can be argued as a defense, and if raised successfully can lead to the agreement in question being found void ab initio or voidable, or alternatively an equitable remedy may be provided by the courts. Nov 07, 2009 ignorantia juris haud excusat it is assume all know the law. Denning argued in this case that for there to be equitable relief the mistake must be fundamental and the innocent party must not be at. Fraud, misrepresentation and mistake under indian contract act. The contract, property and title 191 sale of goods 193. Definition and forms of contracts the law of contract is concerned about the legal enforceability of promises. Describe the essential elements of a contract and explain how a contract is formed, modified and terminated. Studying la1040 contract law at university of london.

It has been argued that if the mistake in bell was not sufficiently fundamental to render the contract void, then it is highly unlikely that any mistake concerning quality would do so. If the mistake is regarding a fact essential to the agreement, the agreement is void. The law of mistake is concerned with the impossibility of a contract being completing, therefore, this suggests that mistake as to the quality of a subject matter would not be sufficiently fundamental to a contract, as it would not render the contract impossible. Mistake of fact and mistake of law under indian contract act. In equity the contract is voidable if there is common mistake. On the other hand, a mistake of law cannot operate to void a contract. There are three parties, principal debtor, surety and the creditor. If the law deems a mistake to be sufficiently grave, then a contract entered into on the grounds of the mistake may be void. Lecture notes contract law and contract formation professional practice ii architecture 544 mark c. Oct 21, 2019 the law of mistake comprises a group of separate rules in english contract law. Contract law is essentially a defensive scorchedearth battleground where the constant question is, if my business partner was possessed by a braineating monster from beyond spacetime tomorrow, what is the worst thing they could do to me. But if the mistake does not relate to the existence of a material fact concerning the subject matter of the contract, the validity of the contract may not be affected thereby. In equity, however, the contract is merely said to be voidable, meaning that the contract remains valid until the party relying on the mistake elects to avoid their obligations. Different rules apply to mistakes at common law to those in equity.