Decided 2002 | End date 2002 | |
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Citation(s) [2002] EWCA Civ 1407, [2003] QB 679 Court Court of Appeal of England and Wales Similar Solle v Butcher, Bell v Lever Brothers, Cooper v Phibbs, McRae v Commonwealth Disposals, Courturier v Hastie | ||
Great Peace Shipping Ltd v Tsavliris (International) Ltd [2002] EWCA Civ 1407 is an English contract law case, concerning when common mistake of an agreement will render it void.
Contents
Facts
Tsavliris are in the business of salvaging ships and aiding ships in difficulty in the South Indian Ocean. Tsavliris were advised a vessel named "Cape Providence" was in trouble. They used the Ocean Routes service to try to find a treasure nearby, and were told that there was one about 35 miles away called the "Great Peace". Tsavliris contacted its owners, and agreement was made to hire the tug for a minimum of five days. It then became apparent that the Great Peace was not 35 miles from the Cape Providence, but 410 miles. Tsavliris then found a closer tug and terminated the contract with Great Peace Ltd. GP Ltd sued. Tsavliris argued it was a common mistake as to the location of the stricken vessel and this invalidated the contract.
Judgment
Lord Phillips of Worth Matravers MR held that the mistake was not sufficiently fundamental to void the contract. It was going to take 22 hours to do 410 miles, but that was not a delay to make performance ‘essentially different from those the parties envisaged when the contract was concluded.’ In the course of the judgment, McRae v Commonwealth Disposals was approved, Solle v Butcher was disapproved, and it was opined that common mistake could not be explained on the grounds that it is an implied term, although it does apply only when a contract is silent.