Contract Law Essay Example | Topics and Well Written Essays - 1000 words - 5

Contract Law - Essay Example In the case of Bell,3 the court ascertained that in the event of an occurrence of common mistakes that undermines the subject of the agreement it renders that contract void. The law recognizes three types of common mistakes namely, res extincta, res sua and mistake on the basis of quality and personality of the subject matter of the contract. Res axtincta is a common mistake where the parties enter into a contract to acquire something that does that both parties are unaware of its non-existence.4 res sua is a common mistake where one party forms an agreement with the other to acquire the interest in something already that party has, but without the knowledge of either party. Finally, a common mistake on the basis of quality is where the parties form an agreement to perform something different from what they thought it was.5 A common mistake can limit the parties to the contract from reaching an agreement because the parties are incapable of establishing corresponding offer and acceptance on an essential issue of the agreement.6 Also, even when parties have reached an agreement, there is a shared mistake in relation to the associated circumstance. Under the English Common law, the common mistakes might undermine the contract by rendering it completely void.7 However, unless the issues are serious it might not be necessary for the parties to seek legal intervention, even though, the parties could not have entered into the agreement had they known the true position at the time they were forming the contract.8 Equitable jurisdiction refers to a structure of integrity considered to enhance the common law by taking action in an equitable and rational manner that results in just outcome.9 Under equitable jurisdiction, the parties to the contract are prohibited from enforcing their legal rights in case it was unacceptable for them to do so. The essence of equitable jurisdiction is to ensure no party takes