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Self-test questions: Mistake (agreement and non-agreement)
Quiz Content
*
not completed
.
Which
one
of the following cases is authority for the principle that cases concerning 'mistake of identity' should be resolved by the application of an objective test, employing the standard rules of offer and acceptance?
Cundy
v
Lindsay
(1877-8) LR 3 App Cas 459.
correct
incorrect
Phillips
v
Brooks Ltd
[1919] 2 KB 243.
correct
incorrect
Lewis
v
Averay
[1972] 1 QB 198.
correct
incorrect
King's Norton Metal Co
Ltd v Edridge, Merrett and Co
(1897) 14 TLR 98.
correct
incorrect
Shogun Finance
v
Hudson
[2003]
UKHL 62, [2004] 1 AC 919.
correct
incorrect
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In which
one
of the following cases was it held that the contract might not be enforceable because one of the parties knew, or should have known, the other party's mistake and failed to draw it to the other party's attention at the time when the contract was made?
Smith
v
Hughes
(1871) LR 6 QB 597.
correct
incorrect
Scriven Bros & Co
v
Hindley & Co
[1913] 3 KB 564.
correct
incorrect
Hartog
v
Colin & Shields
[1939] 3 All ER 566.
correct
incorrect
Centrovincial Estates plc
v
Merchant Investors Assurance Company Ltd
[1983] Com LR 158.
correct
incorrect
Tam
plin v James
(1880) 15 Ch D 215
.
correct
incorrect
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Andy, presenting himself as a well-known figure, Carlos Roberto, entered into a contract with Bianca over the telephone. Bianca believed that she was contracting with Carlos Roberto. Bianca has now discovered the fraud and she claims the contract is void for her mistake as to the other party's identity, but she is unsure which legal authority she should cite. Which
one
of the following statements of advice given to Bianca is
true
?
According to
Ingram
v
Little
[1961] 1 QB 31, the contract is void because Bianca intended to deal only with the person with whom she believed she was dealing (Carlos Roberto).
correct
incorrect
According to
Lewis
v
Averay
[1972] 1 QB 198, the contract is not void, because Bianca intended to deal with the person at the other end of the telephone conversations (Andy).
correct
incorrect
According to
Shogun Finance
v
Hudson
[2003] UKHL 62, [2004] 1 AC 919, the contract is void because Bianca intended to deal only with the person identified in the telephone conversations (Carlos Roberto).
correct
incorrect
According to
King's Norton Metal Co Ltd
v
Edridge, Merrett & Co
(1897) 14 TLR 98, the contract is not void, because Bianca intended to deal with the person at the other end of the telephone conversations (Andy).
correct
incorrect
According to
Smith v Hughes
(1871) LR 6 QB 597
, the contract is void because Bianca intended to deal only with the person identified in the telephone conversations (Carlos Roberto) and so there is a cross-purpose mistake.
correct
incorrect
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Kiran owns an internet jewellery business, where goods can only be acquired on hire purchase terms. Claire clicks on Kiran's website and selects a pearl necklace (valued at £10,000). When asked to choose a 'method of payment', Claire clicks on the 'Cash' button. In accordance with the terms of the website, Claire is prompted to provide the following details: name; address; National Insurance number; bank account details; passport details (any 'payment in cash' will only be requested after delivery of the item has taken place). Because Claire recently burgled Sam's home, she is able to supply all the above details as though she is Sam. Kiran's website automatically carries out a credit check on Sam and, satisfied with the answers, the pearl necklace is dispatched to Sam. Claire is able to intercept the delivery of the necklace and immediately pawns it to Duane. Which
one
of the following statements
most accurately
reflects Kiran's rights?
Because Claire has already pawned the necklace to Duane, Kiran no longer has any right to claim that the contract is void.
correct
incorrect
The contract between Kiran and Claire is void because Claire burgled Sam's home and so the doctrine of illegality applies, which means Duane must return the necklace to Kiran.
correct
incorrect
Because Claire knows of Kiran's mistake, the contract cannot be void for unilateral mistake.
correct
incorrect
The contract between Kiran and Claire is void and Kiran is entitled to claim the necklace from Duane because the contract is in writing and therefore Kiran intended to deal with the named party (Sam) in the contract.
correct
incorrect
The contract between Kiran and Claire is not void and Kiran cannot claim the necklace from Duane, because the contract will be treated as made face to face and the presumption is that Kiran intended to deal with the person that physically accessed her website (Claire).
correct
incorrect
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Tahir owns a tanker that has suffered a massive engine explosion. Tahir finds out from an independent source that a ship owned by Sarah is the closest vessel to the stricken tanker. Sarah agrees to divert her vessel in order to render assistance to the crew of Tahir's tanker, provided Tahir will agree to a minimum hire charge of £50,000, 'irrespective of whether Sarah's vessel is used or not'. Tahir accepts Sarah's offer, but finds out within minutes that Tahir's tanker has already sunk with the loss of all hands. Which
one
of the following statements
most accurately
represents the legal position of Tahir?
Tahir is not bound to pay any hire charge because the contract is probably void for common mistake.
correct
incorrect
Tahir is not bound to pay any hire charge because the contract is voidable for common mistake.
correct
incorrect
Tahir is not bound to pay the hire charge because Tahir's obligations under the contract are subject to an implied condition precedent that Tahir's tanker was afloat at the time when Tahir and Sarah entered into the contract.
correct
incorrect
Tahir is probably bound to pay the hire charge because the contract has allocated the risk of the tanker sinking to Tahir.
correct
incorrect
The question whether Tahir is bound to pay the hire charge will depend on whether a court decides to exercise its equitable jurisdiction to grant relief.
correct
incorrect
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Which
one
of the following statements is
inconsistent
with the decision in
Couturier
v
Hastie
(1856) 5 HL 673?
This case concerned a contract for the sale of specific goods.
correct
incorrect
The decision might also be explained by the doctrine of frustration because the cargo was resold after it had been shipped.
correct
incorrect
The House of Lords held that the buyer was not liable and the risk was not with the buyer.
correct
incorrect
The seller's claim for the contract price was rejected on the ground that the contract was void because of common mistake.
correct
incorrect
Had the buyer brought an action for damages, the seller might have been liable for breach of contract.
correct
incorrect
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Mark, a dealer in antiques, places a painting in his shop window priced at £10,000. Mark thinks the painting may be by Arthur Frier, a local artist whose paintings are now being sought by professional collectors, but as he is not certain of the painter's identity, he decides not to place any label on the painting. Ronnie enters the shop and says: 'That looks like a Frier to me, I'll take it.' Mark does not reply. Ronnie pays the price of £10,000 in cash. Ronnie now discovers that the painting is not by Frier and seeks a full refund. Which
one
of the following statements
most
accurately
summarises the legal position?
Mark and Ronnie have made a common mistake regarding the subject matter of the contract. The contract is void and Mark must refund Ronnie.
correct
incorrect
The contract is probably valid on grounds of
caveat emptor
(buyer takes the risk).
Mark neither contributed to Ronnie's mistake nor made any misrepresentation.
correct
incorrect
Mark is liable to refund Ronnie because Mark has probably taken the risk by remaining silent.
correct
incorrect
Mark is liable to refund Ronnie, if Ronnie rescinds the contract, because the contract is probably voidable according to the decision in
Solle
v
Butcher
[1950] 1 KB 671.
correct
incorrect
The contract is probably void on the ground of a mistake as to quality.
correct
incorrect
*
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In which
one
of the following cases was the equitable jurisdiction to set aside a contract for 'fundamental' common mistake explicitly denied by the court for the first time?
William Sindall plc
v
Cambridgeshire CC
[1994] 1 WLR 1016.
correct
incorrect
Grist
v
Bailey
[1967] Ch 532.
correct
incorrect
Associated Japanese Bank (International) Ltd
v
Credit du Nord SA
[1989] 1 WLR 255.
correct
incorrect
Amalg
amated Investment & Property Co
Ltd v John Walker & Sons Ltd
[1977] 1 WL
R 164.
correct
incorrect
Great Peace Shipping Ltd
v
Tsavliris (International) Ltd
[2002] EWCA Civ 1407, [2003] QB 679.
correct
incorrect
*
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Sheila recently inherited a large sum of money on the death of her uncle. She decides to purchase a specific painting from Jamie, the owner of an art gallery. Jamie assures Sheila that the painting is genuine and worth £1,000,000. Sheila decides to purchase the painting without consulting an independent expert. The painting turns out to be a forgery and worth only £10,000. Which
one
of the following statements
probably
summarises the position between the parties?
Jamie is probably in breach of contract because, possessing special knowledge of the painting, he would be taken as having voluntarily accepted the risk of forgery and his assurance should amount to a term of the contract.
correct
incorrect
The contract is probably void for common mistake at common law because the painting is a complete forgery.
correct
incorrect
The contract is probably valid on the basis of the rule of
caveat emptor
.
correct
incorrect
Jamie is not in breach of contract because it was Sheila's fault that she did not have the painting checked by an independent expert.
correct
incorrect
The contract is probably void on the basis of the non-existence of the subject matter.
correct
incorrect
*
not completed
.
Which of
one
the following statements concerning the relationship between the doctrine of common mistake and the doctrine of frustration is
true
?
Whereas common mistake applies to initial impossibility, a frustrating event can apply in relation to initial impossibility (before the contract was formed) or subsequent impossibility (after the contract was formed).
correct
incorrect
Common mistake renders a contract void, whilst frustration only renders it voidable.
correct
incorrect
Where payment has been made under the contract, common mistake enables the payor to recover the money; frustration does not.
correct
incorrect
The test applied to both common mistake and frustration is one of impossibility.
correct
incorrect
The Law Reform (Frustrated Contracts) Act 1943 can be used to allow a party to recover a just sum in respect of a benefit obtained by the other party in cases of common mistake.
correct
incorrect
*
not completed
.
A contract can be rendered void by common mistake only when it has not allocated the risk of the relevant mistake to one or other of the parties. In which
one
of the following cases was the contract rendered void by common mistake?
Nicholson & Venn
v
Smith-Marriott
(1947) 177 LT 189.
correct
incorrect
William Sindall plc
v
Cambridgeshire CC
[1994] 1 WLR 1016.
correct
incorrect
Amalgamated Investment & Property Co Ltd
v
John Walker & Sons Ltd
[1977] 1 WLR 164.
correct
incorrect
Associated Japanese Bank (International) Ltd
v
Credit du Nord SA
[1989] 1 WLR 255.
correct
incorrect
Great Peace Shipping Ltd
v
Tsavliris (International) Ltd
[2002] EWCA Civ 1407, [2003] QB 679.
correct
incorrect
*
not completed
.
Which
one
of the following statements concerning the decision of the House of Lords in
Bell
v
Lever Brothers Ltd
[1932] AC 161 is
true
?
The House laid down a more relaxed test of 'essential difference' than the test of impossibility.
correct
incorrect
The House laid down a test of 'essential difference' and construed it very narrowly.
correct
incorrect
The case related to a common mistake as to ownership (
res sua
).
correct
incorrect
The case was decided on the basis of a unilateral mistake by one party as to the identity of the other party.
correct
incorrect
By a majority, the House of Lords held that the contract was void.
correct
incorrect
*
not completed
.
Serena purchased a ticket from Top Tickets to attend a match at the Wimbledon tennis championships. At the time Serena purchased the ticket, it had not been made known publically that one of the players had withdrawn from the match because of injury and so the match had been cancelled. Neither Serena nor Top Tickets knew of the cancellation when Serena purchased the ticket. Which
one
of the following
most accurately
summarises the legal position?
Serena assumed the risk of such an incident occurring, so she is not entitled to a refund.
correct
incorrect
The contract to attend the match is void for common mistake.
correct
incorrect
Top Tickets can claim to keep some of the money paid to cover administrative costs under the Law Reform (Frustrated Contracts) Act 1943.
correct
incorrect
A court is likely to exercise its equitable jurisdiction to set aside the contract.
correct
incorrect
Top Tickets is in breach of contract.
correct
incorrect
*
not completed
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Kyra sold a Ming vase to Marie when Marie visited Kyra's shop. Marie represented that she is a famous celebrity and on that basis Kyra allowed Marie to take the vase on credit in return for a promise of the cash the following week. In the meantime, Marie sold the vase to Archie for cash. Archie knew nothing about how Marie acquired the vase, but paid a discounted price as Marie told him she needed a quick sale due to her cash flow issues. Marie has now disappeared without paying the balance owed to Kyra. If Kyra were able to locate the vase and wanted it back, which
one
of the following most accurately summaries the legal position?
The contract between Kyra and Marie is void because Kyra was mistaken as to Marie's identity.
correct
incorrect
Archie is an innocent third party purchaser and is entitled to the vase.
correct
incorrect
The contract is void on the ground of mistake as to quality.
correct
incorrect
The vase now legally belongs to the celebrity that Marie pretended to be because she is one of the contracting parties.
correct
incorrect
Archie was on notice as to the possibility that Marie had obtained the vase fraudulently and so cannot claim to have a legitimate expectation as to a right to keep the vase.
correct
incorrect
*
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.
Parminder advertises the sale of his car for £10,000 in a local newspaper. The advertisement includes a list of features and information relevant to the car. On Monday, Devon contacts Parminder and visits him to look at the car, with a view to purchasing it. Devon notices two DVD players attached to the backseats of the car and a bike rack attached to the roof of the car. He makes an offer of £9,500 for the car, which Parminder accepts. Devon pays a deposit, which he is happy to do because he knowns Parminder through a friend. Parminder takes the car off the market and cancels all other visits to inspect the car. On Thursday, Parminder delivers the car to Devon. Devon notices the DVD players and bike rack are not attached to the car. Parminder states that they were not included in the price and Devon is mistaken. Devon refuses to accept the car and claims he is entitled to the return of his deposit. In relation to the parties' legal positon, which
one
of the following is
true
?
If the advertisement said nothing about the additional items, and Parminder did not indicate they were included, Devon will not be able to rely on his mistaken understanding of the subject matter and there is a binding contract.
correct
incorrect
The contract is void for cross-purpose mistake.
correct
incorrect
The contract is void because Parminder should have been aware that Devon was mistaken.
correct
incorrect
The contract is void for a fundamental mistake as to identity of the subject matter.
correct
incorrect
The contract is voidable for fraudulent misrepresentation.
correct
incorrect
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