The claimant sought rectification of a contract for the sale of land, or damages in deceit. They said that it had been agreed that the price would be adjusted to reflect any change in values. The formula inserted made no great sense mathematically, and mutiual mistake was asserted.
Held: The contract did reflect the intention of Bellway, but any mistake was not mutual. Furthermore the court could not establish exactly what formula would have achieved the aims of the claimant, and ‘This is in truth a case where one party has subsequently come to appreciate that it should not have agreed to the inclusion of a particular term. But that is not the sort of error which enables a court to rectify the agreement. The court cannot remake the parties’ bargain just because it has turned out to be significantly to the detriment of one party, and significantly to the benefit of the other. ‘
However, the base value, which was the source of the problem had been suggested by the defendants and was so wide of the mark as a base cost as to allow an inference of dishonesty, and its proponent did not believe it represented the intended base costs. Judgment for the claimant accordingly.
[2007] EWHC 895 (Ch)
Bailii
England and Wales
Citing:
Cited – Thomas Bates and Sons Ltd v Wyndham’s Lingerie Ltd CA 21-Nov-1980
An application was made for rectification of a rent review clause in a lease. When executing the lease, the tenants’ officer, Mr Avon, noticed that the rent review clause in the lease drafted by the landlords was defective in not including a . .
Cited – Rowallan Group Ltd v Edgehill Portfolio No 1 Ltd ChD 19-Jan-2007
When striking out a claim for rectification of a contract on the basis of a unilateral mistake: ‘the remedy of rectification for unilateral mistake is a drastic remedy, for it has the result of imposing on the defendant to the claim a contract which . .
Cited – George Wimpey UK Ltd v VI Construction Ltd CA 3-Feb-2005
A land purchase contract had been rectified by the judge for unilateral mistake. A factor had been dropped from a formula for calculating the price.
Held: The judge’s conclusion that the circumstances existed to allow a rectification was . .
Cited – Swainland Builders Ltd v Freehold Properties Ltd CA 2002
Swainland Builders Ltd owned the freehold of a block of flats. It had granted 99-year leases at ground rents of all the flats except numbers 11 and 18. It had intended to sell the block subject to the retention of flats 11 and 18 which it initially . .
Cited – Rowallan Group Ltd v Edgehill Portfolio No 1 Ltd ChD 19-Jan-2007
When striking out a claim for rectification of a contract on the basis of a unilateral mistake: ‘the remedy of rectification for unilateral mistake is a drastic remedy, for it has the result of imposing on the defendant to the claim a contract which . .
Lists of cited by and citing cases may be incomplete.
Contract, Land
Updated: 15 January 2022; Ref: scu.251538