ABSTRACT
This question raises two issues in relation to the doctrine of mistake. The first relates to the question of what happens when parties are at crosspurposes as to the subject matter of the contract. This is the kind of mistake which is often referred to as a ‘mutual mistake’, or a ‘mistake negativing agreement’. The cases of Raffles v Wichelhaus (1864) and Smith v Hughes (1871) are relevant here. The second issue concerns the position where both parties make a mistake as to the value of what they are contracting about. This may be a ‘common mistake’ or a ‘mistake nullifying agreement’. The case of Bell v Lever Bros (1932) is the leading authority on this issue as far as the common law rules are concerned, although it may also be necessary to consider the role of equity in this area.
