A famous decision involving mistake in the meaning of contractual terms is Raffles v. Wichelhaus , a case involving two ships with the same name which were confused by the two parties. Neither party was at fault, and the court held that no contract existed.

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Raffles v. Wichelhaus, also known as the "Peerless" case, involved a contract where both parties were referring to different ships named "Peerless" without realizing it, leading to a mutual mistake in the meaning of the terms. The court ruled that there was no consensus ad idem (meeting of the minds), and therefore, no contract was formed.

A Famous Decision Involving Mistake in the Meaning of Contractual