Question : Which type of mistake do these mistakes fall under? (Common/Mutual/Unilateral) Explain.

Request to check responses please

1. Mistake as to the nature of the subject matter of a contract

Mistake as to the nature of the subject matter of a contract is classified under Common Mistake.

Mistake as to the nature of the subject matter of a contract refers to the mistake as to the actual thing, which is the reason why the contracting parties entered into such a contract. Mistake is classified under the vices of consent, which has the effect of making the contract voidable or valid until annulled. This shows that an important thing as to the subject matter was not known or was not disclosed to the parties prior to the establishment of the contract.

Case e.g. Bell v Lever Bro Ltd where the court gave an example where A buys a picture from B and both thought that the picture was a masterpiece done by an old master and a high price is paid. Later it turns out to be a modern copy then A has no remedy in the absence of no representation or warranty.

2. Mistake as to the location of the subject matter of a contract

Mistake as to the location of the subject matter of a contract is classified under Common Mistake.

Applicable case as an e.g. is the McRae v Commonwealth Disposal Commission where the court held that there was a contract and it can't be voided for mistake because the defendant who was Commonwealth Disposal Commission vouched for the location of the wrecked vessel despite its nonexistent at designated location.

3. Mistake as to who owns the subject matter of the contract.

Mistake as to who owns the subject matter of the contract is classified under Common Mistake and this will render the contract void.

e.g. If we are both mistaken of the ownership of an item, the true owner can later on come to claim his item while contract between the two parties who exchanged the item is voided.

Can also be classified under Unilateral Mistake. When there is a unilateral mistake and parties to the contract never met in person, the court usually finds that the contract was void.