How does the law deal with instances of mistaken identity in contracts made face to face, such as that in Shogun Finance v Husdon.

Question

Quizplus · Accepted Answer

The Answer is In cases of mistaken identity in contracts made face to face, the law generally follows the principles established in the case of Shogun Finance v Hudson. In this case, the court held that if a person enters into a contract with someone they believe to be a specific individual, but it later turns out that the person they contracted with was not the intended individual, the contract may be voidable for mistake.

The law recognizes that in face-to-face contracts, there is a greater risk of mistaken identity due to the immediate and personal nature of the interaction. As such, if it can be proven that the mistaken identity was fundamental to the contract and that the mistaken party was not the intended party, the contract may be set aside.

However, it is important to note that the burden of proof lies with the party seeking to set aside the contract. They must demonstrate that the mistake was fundamental and that they would not have entered into the contract had they known the true identity of the other party. Additionally, the mistaken party must act promptly upon discovering the mistake in order to seek relief from the contract.

Overall, the law recognizes the potential for mistaken identity in face-to-face contracts and provides a framework for addressing such instances, as established in the case of Shogun Finance v Hudson.

How Does the Law Deal with Instances of Mistaken Identity