Smith v Hughes [1871]

Court: Queen’s Bench

Facts: Hughes, a horse trainer, purchased oats from Smith, believing them to be old oats suitable for his horses. When Hughes discovered they were new oats, he refused to pay, claiming a mistake.

Issue: Can a contract be voided due to a mistake if both parties are not equally aware of the misunderstanding?

Held: The court found that Hughes was still bound by the contract, as the seller had made no misrepresentation and the mistake was not mutual.

Key Judicial Statement: Blackburn J held that contracts are based on an objective interpretation of conduct, and mistakes not induced by the other party do not invalidate contracts.

💡 Leveluplaw: A party cannot void a contract based solely on their own misunderstanding if there is no fraud or misrepresentation by the other party.