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84 Once the court determines that unforeseen circumstances have, indeed, resulted in the contract being impossible of performance, it is next necessary to determine whether, on true construction of the contract, one or other party has undertaken responsibility for the subsistence of the assumed state
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85 Circumstances where a contract is void as a result of common mistake are likely to be less common than instances of frustration. Supervening events which defeat the contractual adventure will frequently not be the responsibility of either party. Where, however, the parties agree that something
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82 ... while we do not consider that the doctrine of common mistake can be satisfactorily explained by an implied term, an allegation that a contract is void for common mistake will often raise important issues of construction. Where it is possible to perform the letter of the contract, but it is
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alleged that there was a common mistake in relation to a fundamental assumption which renders performance of the essence of the obligation impossible, it will be necessary, by construing the contract in the light of all the material circumstances, to decide whether this is indeed the case…’
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165 ... the fact that the vessels were considerably further apart than the defendants had believed did not mean that the services that the Great Peace was in a position to provide were essentially different from those which the parties had envisaged when the contract was
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shall be done which is impossible at the time of making the agreement, it is much more likely that, on true construction of the agreement, one or other will have undertaken responsibility for the mistaken state of affairs....
286:(v) the state of affairs may be the existence, or a vital attribute, of the consideration to be provided or circumstances which must subsist if performance of the contractual adventure is to be possible ...
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the contract with Great Peace Ltd, who responded by suing for gross breach of contract. Tsavliris argued it was a common mistake as to the location of the stricken vessel and this invalidated the contract.
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would have taken 22 hours to cover 410 miles, but that delay was insufficient to make performance of the contract "essentially different from the parties envisaged when the contract was concluded".
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was needed to temper the effect of the common law doctrine of frustration, so there is scope for legislation to give greater flexibility to our law of mistake than the common law allows.
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terms. Tsavliris used the Ocean Routes service to try to locate the nearest rescue vessel, and were told that there was one about 35 miles away called the
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Lord
Phillips was a maritime lawyer who had served his National Service in the Royal Navy, during which time he had been paid a share of a salvage award.
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76 ... the following elements are necessary before a common mistake will void a contract, through analogy to frustration, from the case,
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only applies if the contract contains no provision that covers the situation, the same should be true of common mistake,
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owners, and agreement was made to hire the tug for a minimum of five days. It then became apparent that the
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280:(iv) the non-existence of the state of affairs must render performance of the contract
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held that the mistake was not sufficiently fundamental to void the contract. The
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of affairs… has undertaken the risk that it may not prove possible to perform…
267:(i) there must be a common assumption as to the existence of a state of affairs
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was in trouble, Tsavliris entered into a salvage agreement with the owners on
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426:
Great Peace
Shipping Ltd. v Tsavliris (International) Ltd EWCA Civ 1407
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The defendants, Tsavliris, were professional salvors in the business of
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and applied this principle in his ruling. He commented further that
204:. Using London brokers called Marint, Tsavliris contacted the
166:"could not stand in the face of the earlier decision of the
428:, judgment dated 14 October 2002, accessed 18 November 2023
61:
Great Peace
Shipping Ltd v Tsavliris (International) Ltd
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Great Peace
Shipping Ltd v Tsavliris (International) Ltd
216:, but 410 miles. Tsavliris then found a closer tug and
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England and Wales Court of Appeal (Civil
Division),
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within a contractual agreement will render it void.
158:had established a doctrine of "equitable mistake".
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274:by either party that that state of affairs exists
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188:and rendering aid to ships in difficulty in the
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339:Law Reform (Frustrated Contracts) Act 1943
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480:Court of Appeal (England and Wales) cases
439:McRae v Commonwealth Disposals Commission
242:McRae v Commonwealth Disposals Commission
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317:Comparison with the law on frustration
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230:Lord Phillips of Worth Matravers MR
162:ruled that the thinking underlying
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485:2002 in United Kingdom case law
239:In the course of the judgment,
192:. Learning that a vessel named
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321:Lord Phillips observed that
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357:Frustration in English law
257:Blakeley v Muller & Co
212:was not 35 miles from the
133:which investigates when a
475:English contract case law
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27:English contract law case
410:, accessed 21 March 2023
325:Just as the doctrine of
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270:(ii) there must be no
140:It is notable for its
444:[1951] HCA 79
369:, (1867) LR 2 HL 149
352:English contract law
131:English contract law
173:Bell v. Lever Bros.
406:Martin-Clark, D.,
261:Lord Alverstone CJ
245:was approved, and
190:South Indian Ocean
251:was disapproved:
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16:(Redirected from
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259:19 TLR 186, per
186:maritime salvage
164:Solle v. Butcher
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194:Cape Providence
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152:Court of Appeal
147:Solle v Butcher
129:) is a case in
126:The Great Peace
123:(also known as
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35:The Great Peace
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458:(Australia).
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337:Just as the
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327:frustration
234:Great Peace
210:Great Peace
202:Great Peace
160:Great Peace
104:Frustration
469:Categories
456:High Court
448:(1951) 84
394:References
312:concluded.
282:impossible
218:terminated
150:, a 1950
81:, QB 679
75:Citations
346:See also
272:warranty
225:Judgment
98:Keywords
67:Decided
367:UKHL 1
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374:Notes
180:Facts
49:Court
308:...
297:...
290:...
106:and
70:2002
452:377
450:CLR
198:LOF
170:in
144:of
471::
454:,
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415:^
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176:"
20:)
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