chapter  8
Mistake
Pages 13

In general, a party to a contract is bound, notwithstanding that he ‘made a mistake’ in entering into it. For instance, in an example suggested by Lord Atkin, 1 P agrees to purchase from V, a roadside gas station. Unknown to P, a bypass road is about to be constructed which will divert traffi c away from the area. P cannot escape from the contract on the ground that he ‘made a mistake’, in the sense that he would not have entered into it had he known about the proposed bypass road. Similarly, if B agrees to buy goods from S for a certain price, believing that he will be able to resell them at a profi t, but a sudden fall in the market value makes it inevitable that he will resell at a loss, he remains bound by his contract with S. The principle in agreements for sale is ‘caveat emptor’ (let the buyer beware).