Best insurer and least cost avoider : In the risk allocation process, it is important to consider how best to allocate a particular risk of loss. If one of the parties is actually or constructively aware of the risk of loss and has failed to take precautions to guard himself against that risk, he may be regarded as the most appropriate person to bear that risk. Furthermore, if one of the parties is responsible for bringing about the mistake

doi:10.4324/9781843141518-133

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ABSTRACT

Mr Balcombe, appearing for the purchasers, says that the purchasers bought the property as property which was ripe for development and that the vendors sold upon the same basis, and that by reason of the decision to list the property, the property was not in fact, ripe for development. Therefore he says there was a common mistake as to the nature of the property, and the purchaser is entitled to rescission. So, the alleged common mistake was that the property was property suitable for and capable of being developed.