Mistake Q&A

These are the Contract Law Mistake Questions and Answers Q&As. You will find a lot of examples available for the kinds of questions you could get on your coursework or examination. The answers are given discuss a problem question that looks at Mistake. There is a mix of essay questions and problem questions with answers to guide you. These notes will demonstrate to students how to approach legal essays and how to provide straightforward advice.

Question

Assume that ReachSkywards Ltd are granted planning permission to build their office block.  As the block promises to be the tallest building in Manchester, it receives much local press coverage. 

Irmina, a supplier of building materials, is contacted by Michael, who introduces himself as the chairman of ReachSkywards Ltd.  Michael tells Irmina that his company needs to place a large order for various building materials, but that, until financing arrangements are concluded, this will have to be on credit.  Irmina mistakenly believes that ReachSkywards is the company she has read about in the local papers, who are building the tallest office block in Manchester.  As such, she thinks that there is little risk in allowing Michael to have credit.  Consequently, they enter a contract, and Michael takes delivery of the materials.  Payment is to be made a month later.  However, Michael does not pay.  When Irmina, by now quite worried, tries to contact Michael she discovers her mistake.   She phones Michael, who tells her, “Too bad – sue us if you like, but there is a long list of creditors ahead of you!  Those materials are ours now.”

Advise Irmina (ignoring any issue of criminal liability).