Contract Law

Business Law Assignment; Mistake in contract law, is a factual misunderstanding that may lead to a failure of a meeting of the minds. Unilateral mistake is mean that is only one party is mistaken, but the other party knows, or ought reasonably to be aware of the mistake. Contract may be void or voidable. Void is a contract that is no legal effect. While, voidable is an agreement that may be affirmed or rejected at the option of one of the party. The reason why Lord Denning took the view that these two cases could not be reconciled and how the apparent conflict between these two cases was resolved by the decision in Lewis v Averay was explain.

The first case under unilateral mistake is Boulton v Jones(1857). In this case, the contract does not have legal effect, void. Unlike few other cases under unilateral mistake, that was no rogue involved in Boulton v Jones(1857). In Boulton v Jones, the defendant, Jones had sent an order to Brocklehurst for order some pipe hose. Brocklehurst had owed Jones money when dealing with Jones at the time. However, Brocklehurst had just sold his business to his foreman, Boulton. Boultion receive that order and sent the goods to Jones and sent an invoice to Jones after he had used the pipe hose. Jones refused to pay and resisted a claim for payment by the foreman, ‘set-off’ against Brocklehurst. The court held that Jones is intended to deal with the Brocklehurst and not Boulton. The plaintiffs knew this but still take the order from Jones. Therefore, that is no contract because the defendant does not have the intended to deal with the plaintiffs. So, the defendant, Jones won.

The second case is Cundy v Lindsay(1878). In the case, a rogue named Blenkarn pretend a well know respectable firm called Blenkiron & Co who carried on business at 124 Wood Street. The rogue rented a room at the further down the road there and sent an order for handkerchiefs to Lindsay. The rogue signed his name to look like Blenkiron & Co. Lindsay

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