Deck 13: Rectification

Question 1

Rectification is an equitable remedy that is available to correct mistakes in oral and written contracts.

Answer 1

False

Question 2

A more liberal approach to interpretation and implication means that the scope of rectification will be expanded.

Answer 2

False

Question 3

Which of the following may be taken into account by a judge as evidence when considering whether or not to allow rectification? Please select all that apply.

A) Pre-contractual negotiations
B) A video of a prior meeting that reveals the parties' actual intentions
C) A draft copy of the contract in question
D) Pages which were intended to be included in the contract in question

Answer 3

A,B,C,D

Question 4

Which of the following constitute essential criteria for the successful establishment of a rectification claim on the basis of common mistake? Please select all that apply.

A) The existence of a prior agreement between the parties
B) A continuing common intention up until the time the written contract was signed
C) Failure of the written contract to reflect what the parties agreed
D) Rectification would enable the written instrument to carry out the agreement which both parties intended

Question 5

For a claim for rectification based on common mistake, the prior agreement between the parties must be specifically enforceable.

Question 6

Alex submitted an order for 'Chinese vegetables known locally as pak choy', which John accepted. John asked his usual supplier Mark for assistance with procuring the pak choy and was told that the term was simply a colloquial name for vegetables originating from China. The parties thus agreed to a sale of pak choy over the phone, but subsequently formalised a written contract for the purchase of 'Chinese vegetables'. Upon delivery, Alex refused to accept the generic Chinese greens he received because pak choy actually refers to a specific type of vegetables. John wishes to bring a rectification claim against Mark in order to obtain the correct goods. Can he succeed?

A) No, because his earlier conversations with Mark are not admissible as evidence in a rectification claim.
B) Yes, because he can argue that Mark misled him as regards the information on pak choy, and that their oral agreement was for pak choy.
C) No, because John and Mark agreed to a sale of Chinese vegetables and the written contract accurately reflected that.
D) None of the options provided are correct.

Question 7

A and B agree to a contract for the sale of potatoes. A is in charge of drafting the contract but fails to include a crucial provision regarding payment. B notices the error but decides not to inform A about it since the omission benefits him. Can the contract be rectified even though there was no common mistake shared by both parties?

Question 8

Which of the following statements is true:

A) Rectification is a discretionary remedy.
B) Rectiifcation is not a discretionary remedy.
C) Rectification may not be awarded where the claimant has acted unconscionably in some way
D) Rectification may not be awarded where it would affect the position of third parties who have acted in good faith.