Raffles v Wichelhaus [1864]

Court: Exchequer Court

Facts: Raffles (C) and Wichelhaus (D) entered into a contract for the sale of 125 bales of Surat cotton, specifying that the cotton was to be shipped from Bombay on a ship named "Peerless." Wichelhaus expected the cotton to arrive on the Peerless arriving in October, while Raffles meant the Peerless arriving in December. When the cotton arrived on the December ship, Wichelhaus refused to pay, and Raffles sued for breach of contract.

Issue: Was the contract voidable due to the mutual mistake regarding the identity of the ship named "Peerless"?

Held: The Exchequer Court held that the contract was void due to mutual mistake. The differing understandings of which ship was intended rendered the contract voidable.

💡 Leveluplaw: This case highlights that a contract can be voided if there is a mutual mistake about a key term, especially when the mistake involves fundamental elements like identity. It's crucial for both parties to have a clear, shared understanding of essential terms to avoid such issues.