Q&As

A and B enter an agreement involving the transfer of property. Subsequent to contract, it emerges that A is unable to perform its obligations under the contract as title to the property instead lies with A's relative. B acted in good faith and was unaware of this mistake. As A was never in a position to perform the contract, does his position at law differ to if A were in breach of contract in the ordinary sense?

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Published on LexisPSL on 24/07/2015

The following Property Disputes Q&A provides comprehensive and up to date legal information covering:

  • A and B enter an agreement involving the transfer of property. Subsequent to contract, it emerges that A is unable to perform its obligations under the contract as title to the property instead lies with A's relative. B acted in good faith and was unaware of this mistake. As A was never in a position to perform the contract, does his position at law differ to if A were in breach of contract in the ordinary sense?

It is likely in this type of scenario that the grounds for relief would be mistake or misrepresentation rather than breach of contract.

In terms of remedies, rescission ab initio (where the contract is treated as if it never existed) is avai

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