Solle v Butcher
| Solle v Butcher | |
|---|---|
 | |
| Court | Court of Appeal of England and Wales |
| Citation(s) | [1950] 1 KB 671 |
| Keywords | |
| Contract, remedies | |
Solle v Butcher [1950] 1 KB 671 is an English contract law case, concerning the right to have a contract declared voidable in equity. It is historically significant because of the "equitable mistake" judgment established by Lord Denning. .
Facts
Mr Butcher had a flat that was rent controlled. It was not supposed to be leased at more than £140. But neither party knew this and he leased it to Mr Solle for £250 pa. When Mr Solle found out, he sought to recover the amount overpaid. Mr Butcher counterclaimed for rescission of the lease on ground of mistake.
Judgment
The Court of Appeal held that Mr Butcher was entitled to set aside the lease ‘on terms’.
Jenkins LJ said the contract could not be rescinded because it was a mistake of law.
Denning LJ said the contract was valid at law, but voidable in equity. He clearly wished to restrict the scope of common mistake on law, because of the effect of nullity on innocent third parties.
Bucknill LJ held the landlord was entitled to rescind because "there was a mutual mistake of fact on a matter of fundamental importance, namely, as to the identity of the flat".
The doctrine of equitable mistake was superseded by the Court of Appeal's ruling in Great Peace Shipping Ltd. v Tsavliris (International) Ltd. (2002).[1]
See also
References
- ↑ Martin-Clark, D., Great Peace CofA, accessed 18 September 2016