Statoil ASA v Louis Dreyfus Energy Services LP [2008]

Court: High Court

Facts: Statoil and Louis Dreyfus entered into a contract that required Louis Dreyfus to indemnify Statoil for demurrage costs. Statoil made a mistake in calculating the demurrage, and they sought to void the settlement agreement based on this unilateral mistake.

Issue: Is there an equitable doctrine of unilateral mistake in English law that allows contracts to be voidable?

Held: The court held that there is no equitable doctrine of unilateral mistake that renders contracts voidable. The settlement agreement was valid despite the mistake, and the contract was not void either in common law or equity.

Key Judicial Statement: Aikens J affirmed that unilateral mistake does not provide grounds for voiding a contract under English law. Even with awareness of the mistake by one party, the contract remains binding unless other principles of invalidity apply.

💡Leveluplaw: In English law, a contract is not voidable due to unilateral mistake unless specific common law or equitable doctrines apply. The principle that knowledge of a mistake does not invalidate a contract remains fundamental.