Equitable mistake CASES
In English law, an equitable mistake occurs when a contract or transaction is entered due to a fundamental misunderstanding, allowing courts of equity to intervene for fairness.
Definition and Principles
Equitable mistake provides remedies when strict common-law principles don’t adequately address a fundamental mistake, typically granting relief such as rescission or rectification of the agreement.
Common Examples
- Mistakes in written documents that do not reflect parties’ genuine agreement (rectification).
- Contracts made based on mutual misunderstanding of fundamental facts.
Legal Implications
- Equitable remedies include rescission or rectification rather than damages.
- Courts assess fairness and good conscience in granting relief.
Practical Importance
Understanding equitable mistake aids parties in ensuring genuine consensus and protecting against unfair or unintended obligations due to fundamental errors.
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A landlord and tenant mistakenly believed a flat was not subject to rent control and agreed on a rent of £250. The lawful rent was £140. The court set the lease aside in equity, establishing a doctrine of equitable mistake. Facts The defendant, Charles Butcher, had leased a building containing five flats. He carried out substantial alterations to a flat which had previously been damaged by a bomb. The plaintiff, Godfrey Solle, was a surveyor who had advised Butcher on the alterations and was aware of the Rent Restriction Acts. Both parties, acting on advice Solle had been involved in
