Question

Question 1: a) Explain the different forms of mistake identified under contract law. You should support your answer by the use of appropriate case law.

b) Explain the concept of “invitation to treat” in contract law. Use appropriate case law to explain your answer.

PLEASE DO NOT COPY AND PASTE

Answer 1

Ans -1) Mistake- may be defined as an erroneous about something . It may be a mistake of law or fact.

Mistake of law- It may be of two types

I) Mistake of law of country - Ignorance is not an excuse and same is not allowed in laws of country , Any party can not be allowed to get any relief on ground of igorance ( dolle v. Butcher(1950) 2 K.B 671)

II) Mistake of foregin law- Such mistake is treated as mistake of fact and agreement in such case is void

Mistake of fact - may be of two types

i) Bilateral Mistake- when both the parties to agreement are under a mistake as to matter of fact which is essential to agreement , there is such mistake , in such case agreement is void , two condition must fulfilled in this mistake

a) Mistake must b mutual

b) Mistake must relate to matter of fact essential to agreement ( Galloway v. Galloway, 1914, 30, TLR. 531).

ii) Unilateral Mistake- when in a contract only one party is mistaken regarding subject matter or in understanding terms of agreement this is unilateral mistake.

For example- A offers to sell his house to B for 44,000 by mistake he write 40000, he can not plead mistake as defence  

Exceptions

i) Mistake as to identity of person contract with

(Bouloton v. Jones, (1857) 2 H.&N. 564)

ii) Mistake as to nature of contract

An old man with weak eyesight sign a Bills of exhange thinking as gurantee note. ( Foster v. MacKinnon, (1869,)

Ans 2) Invitation to treat is a concept in contract law which comes from a Latin phase "Invitato ad offerndium means "Inviting an offer". Offer is the first step towards a legal contract , mere invitation to offer does not constitute a leagl binding contract unless all the terms and conditions regarding the contract are discussed by parties to contract ,

Also not every invite does constitute a legal offer , a proper legal offer must cobstitute following

I) offer must show obvious intention on the part of offeror bound by it

II) offer must be definite

III) It must be communicated to offeree.

Legal rules as to offer

a) Offer must be such as in law is capable of being accepted and give rise to legal relationship

b) Terms of offer must be defenite , unambigious and certain (Taylor v. Portungton 1855)

A says to B , " I will sell you a car , A has four cars, offer is not definite .

c) An offer may be different from a declaration and announcement - Announcement of beauty competition by parlour is not an offer ( Rokne v. Dawson ,1895)

d) Offer must be communicated ( Lalman v. Gauri Dutt, 1913,)

e) Offer must be made with a view to obtain assent

f) offer should not contain a term the non compliance of which may be amount of acceptance

g) A statement of price is not an offer ( Harvey v. Fscey, 1893)