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Mistake in its variety of forms: the injustice of giving securities supporting financial institution debts on an error of judgement or without informed consent

Journal Article


Abstract


  • The fact that a party is acting under a mistake in respect of a contract of suretyship does not, under common law, automatically afford any general relief. The law takes a robust view of mistakes in that the parties should be careful enough to avoid them. However, an error or mistake in the recording of the contract is likely to result in the advantage of some kind to one party and disadvantage to the other. There would certainly be injustice if the party who is advantaged by the error seeks to maintain that advantage, whereupon the contract may be vitiated. Equity is somewhat more accommodating, and will intervene if the enforcement of legal rights amounts to injustice and unconscionable conduct in the circumstances.

Publication Date


  • 2017

Citation


  • C. Y. C. Chew, 'Mistake in its variety of forms: the injustice of giving securities supporting financial institution debts on an error of judgement or without informed consent' (2017) 32 (6) Journal of International Banking Law and Regulation 221-228.

Ro Metadata Url


  • http://ro.uow.edu.au/lhapapers/3107

Number Of Pages


  • 7

Start Page


  • 221

End Page


  • 228

Volume


  • 32

Issue


  • 6

Place Of Publication


  • United Kingdom

Abstract


  • The fact that a party is acting under a mistake in respect of a contract of suretyship does not, under common law, automatically afford any general relief. The law takes a robust view of mistakes in that the parties should be careful enough to avoid them. However, an error or mistake in the recording of the contract is likely to result in the advantage of some kind to one party and disadvantage to the other. There would certainly be injustice if the party who is advantaged by the error seeks to maintain that advantage, whereupon the contract may be vitiated. Equity is somewhat more accommodating, and will intervene if the enforcement of legal rights amounts to injustice and unconscionable conduct in the circumstances.

Publication Date


  • 2017

Citation


  • C. Y. C. Chew, 'Mistake in its variety of forms: the injustice of giving securities supporting financial institution debts on an error of judgement or without informed consent' (2017) 32 (6) Journal of International Banking Law and Regulation 221-228.

Ro Metadata Url


  • http://ro.uow.edu.au/lhapapers/3107

Number Of Pages


  • 7

Start Page


  • 221

End Page


  • 228

Volume


  • 32

Issue


  • 6

Place Of Publication


  • United Kingdom