Decided 31 May 1867 | End date May 31, 1867 | |
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Citation(s) [1867] UKHL 1, (1867) LR 2 HL 149 Similar Courturier v Hastie, Solle v Butcher, Bell v Lever Brothers, McRae v Commonwealth Disposals, Great Peace Shipping | ||
Cooper v Phibbs [1867] UKHL 1 is an English contract law case, concerning the doctrine of mistake.
Contents
Facts
Mr Cooper agreed to take a lease of a salmon fishery from his uncle at where the Arrow and Owenmore Rivers met, near Ballysadare, Ireland. After the uncle died, the lease was renewed through Mr Cooper’s aunt, via her three daughters, Cooper’s cousins, and Mr Phibbs acting as their agent. The aunt, three sisters, and Mr Cooper, had all assumed that they were entitled to the land through a right of inheritence. In fact, Cooper was truly entitled to an equitable residual interest, because the uncle in his will had granted Cooper a life tenancy. When the sisters asked for the next rental payment, this had transpired and Mr Cooper sought a declaration that he was the owner and that the lease was not enforceable.
Judgment
The House of Lords held that the contract was voidable at Mr Cooper’s instance, on the basis of a mistake that it was possible for the aunt and sisters to lease the land to Mr Cooper. Since Mr Cooper was the true beneficial owner, in equity, it was impossible for a lease to be granted to him in law.
Lord Cranworth said the following.
Lord Westbury agreed, and expressed the issues as follows:
Lord Colonsay concurred.
Significance
The case has been seen as an example of how a contract will be unenforceable if there is a mistake by both parties about the possibility, in law, to perform a contract. This doctrine of mistake in equity was expanded upon by Denning LJ in Solle v Butcher, which emphasised that mistakes in equity would render a contract voidable (at the instance of the claimant), rather than void. However, mistake in equity was held to have been abolished in The Great Peace. This remains a point of controversy.