Hartog v Colin & Shields [1939] 3 All ER 566

King’s Bench Division

Basic Facts: C (Hartog) was negotiating with D (Colin & Shields) for the purchase of 30,000 Argentine hare skins. D mistakenly offered the skins at a price per pound instead of per piece. C accepted the offer immediately, attempting to take advantage of the low price. D refused to deliver, asserting the offer was a mistake.

Issue for the Court: Can a mistake about the terms of a contract void the contract if one party seeks to exploit it?

Held : The court found that no contract was formed due to the mistaken terms. C was aware of the mistake and attempted to capitalize on it. As the mistake was obvious, the contract was not enforceable.

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Hadley v Baxendale (1854) 9 Exch 341