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Words: 2,020 | Submitted: Fri Nov 30 2007
... but they are not under the knowledge of contracting parties, constitutes a common mistake which may set aside the contract. Generally, common mistake is the situation where there is a common misapprehension of the parties and which is related to the fundamental purpose of the contract. For example, in Bell v. Lever and Brothers Ltd1, the House of Lords held that the defendants were unable to recover the money for a compensation agreement with the claimants, even though they entered into this agreement under "a common mistake that the service agreements were valid when they were, in fact, voidable"2. As Lords Atkin and Thankerton held, the mistake was not sufficiently fundamental to avoid the contract. In case of Luigi and Bruno, the buyer may try to prove that there is a common mistake as to the possibility of performing the contract and more specifically a legal impossibility to perform what was ...
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