Centrovinicial Estates Plc v Merchant Investors Assurance Company Ltd [1983]

Court: Court of Appeal

Facts: The landlord mistakenly offered a lower rent of £65,000 instead of £126,000. The tenant accepted the offer, and the landlord sought to have the contract voided due to unilateral mistake.

Issue: Can a contract be voided on the grounds of a unilateral mistake if one party knew or should have known of the mistake?

Held: The court allowed the tenant to defend the action, stating that the landlord must prove that the tenant knew or should have known about the mistake.

Key Judicial Statement: Slade LJ clarified that a contract could be void due to a unilateral mistake only if the other party knew or should have known of the mistake.

💡 Leveluplaw: A unilateral mistake does not automatically void a contract. The mistaken party must prove that the other party was aware or should have been aware of the error at the time of agreement.