First Principles of Business Law

Question 8.

Assume that, after talking to Tyler, Sunny mistakenly formed the belief that Georgie Ripper was committed to taking part in the show. She now realises that she was mistaken, and says that she would not entered into her contract with Tyler if she had realised the true position. She wants to avoid the contract on grounds of mistake. Which of the following statements best reflects the legal position?

(a) This is a case of bilateral mistake, each party believing something different about an important fact. The contract is likely to be set aside a void ab initio on these grounds.

(b) This is a case of unilateral mistake because only Sunny was mistaken. In all the known circumstances, it is unlikely that Tyler will be allowed to enforce this contract against Sunny.

(c) This is a case of unilateral mistake because only Sunny was mistaken. However, in the known circumstances, it is likely that Tyler will be allowed to enforce this contract against Sunny, despite her mistake.

Quit the case study