Equitable mistake (Middleton v Middleton Enterprises (Holdings) Ltd)

Table of contents

• What are the practical implications of this case?
• What was the background?
• What did the court decide?
• Case details

Article summary

Private Client analysis: The court held that a series of interest-free loan agreements between a company’s shareholders and the company could be set aside for mistake under the equitable principles applicable to voluntary dispositions as set out in Pitt v Holt. The decision makes clear that the court will look at the substance of a transaction, and not simply its form, in deciding whether, on a claim for mistake, the equitable or common law principles should apply. Written by Richard Wilson QC, James Weale and Oliver Jones of Serle Court.