Brennan v Bolt Burdon [2004]

Court: Court of Appeal

Basic Facts: C suffered personal injury and reached a compromise after the limitation period closed but based on an overruled case. C sought to void the compromise due to a common mistake about the law.

Issue for the Court: When does a common mistake about the law void a contract?

Held : The court held that a common mistake of law does not void a contract unless it renders performance impossible.

• Kay LJ ruled that a common mistake of law must fundamentally impact the contract to be grounds for voiding it. Simply being disadvantageous is insufficient. Sedley LJ suggested that if the parties would have reached the same agreement knowing the correct law, the contract stands.

💡Leveluplaw : This case clarified that for a contract to be voided due to a mistake of law, the mistake must significantly affect the contract's performance, setting limits on when mistakes can invalidate agreements.