Equitable Remedies in the Doctrine of Mistake

Equitable Remedies

The Rationale for Equitable Remedies

As can be seen from cases like Cundy vs. Lindsay, the common law doesn’t pay much attention to the interest of third parties in a contract. If it can just be proved that there was a mistake, the contract would be made void. Due to this rigidity and harshness Continue reading “Equitable Remedies in the Doctrine of Mistake”

THE DOCTRINE OF MISTAKE IN THE LAW OF CONTRACT

mistake

Introduction to the Doctrine of Mistake

There is always a consensus ad idem (meeting of the minds) between parties that enter into a contract. What this means is that both parties to a contract are thinking of the same thing when they enter into a contract. Thus, when a party enters into a contract on a mistaken assumption of some fundamental facts, the consensus ad idem is lost. This then justifies the contract being voided for mistake.

To a layman, any obvious Continue reading “THE DOCTRINE OF MISTAKE IN THE LAW OF CONTRACT”

PRIVITY OF CONTRACT

What Is Privity of Contract?

In the law of contract, privity of contract means that it is only parties to a contract that can benefit or be subjected to obligations under such contract. Thus, as a general rule no individual can suffer burden or enjoy benefits in contract to which he isn’t a party. This principle is in line with other fundamental principles of the law of contract such as: freedom of contract, personal liberty of contracting parties, choice of parties etc. This principle was firmly established in the case of Continue reading “PRIVITY OF CONTRACT”

CAPACITY TO CONTRACT

  CAPACITY TO CONTRACT

A contract may have all the required contents: offer, acceptance, consideration and intention to create legal relations. However it could still be regarded as unenforceable if some laws in relation to privileged persons are not fully complied with. Thus, it is not all persons that can engage in a contract. This aspect would deal with the capacity to contract. In doing this, the outline below would be utilized:

  • Who is an illiterate
  • The Illiterate Protection Act
  • Limitations to the Illiterate Protection Act
  • Contracts Entered into by infants
  • Contracts made by lunatics
  • Contracts made by drunkards

Continue reading “CAPACITY TO CONTRACT”

THE INTENTION TO ENTER INTO LEGAL RELATIONS

 THE INTENTION TO ENTER INTO LEGAL RELATIONS

There is a lot of academic controversy regarding whether or not the intention to create legal relations should be regarded as a necessary ingredient in the formation of a contract. This controversy, as previously stated is purely academic. Under the common law the intention must be present. In commercial transactions, the intention to create legal relations is presumed to be inherent while it is arguable under domestic and intermediate situations. Continue reading “THE INTENTION TO ENTER INTO LEGAL RELATIONS”

THE CONCEPT OF CONSIDERATION

CONSIDERATION

the requirements for the formation of a contract include offer, acceptance, consideration, intention to create legal relations and capacity to contract.  However, the purpose of this work is to discuss on consideration. In order to achieve this, the following outline will be applied:

  • What is Consideration
  • Consideration must move from the promisee
  • Executory and executed consideration
  • The rule against past consideration
  • Exceptions to the rule against past consideration
  • Sufficiency of consideration
  • Equitable estoppel

Continue reading “THE CONCEPT OF CONSIDERATION”

%d bloggers like this: