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Solle v Butcher [1950]1 KB 671 (CA)

Facts:

P rented flat. Neither D or P knew it was rent controlled. P actually recommended rent

Ratio:

You can set a mutual mistake aside in equity if it is fundamental – TEST: is the mistake sufficiently fundamental?

Analysis:

2 ways to deal with it – common law (Bell) and equity (Solle)

Mistake which renders K void
**Bell v Lever – once a K has been made then the K is good unless and until it is set aside for failure of some condition on which the existence of the K depends, or for fraud, or on some equitable ground
***Neither party can rely on own mistake to nullify it, even if fundamental

Mistake which renders K voidable (equitable jurisdiction)
**This was done in court of equity – could relieve a party from the consequence of his own mistake, so long as it could do so w/o injustice to 3rd parties
**A K will be set aside if the mistake of one party has been induced by a material misrepresentation of the other, even though not fraudulent or fundamental
***Or if one party, knowing that the other is mistaken about the terms of an offer, or the identity of the person by whom it is made, lets him remain in delusion and concludes the K on mistaken term

Holding:

Judgment for D on terms that P must elect between rescission and paying the full rent


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