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Solle v Butcher

[1950] 1 KB 671

Case summary last updated at 02/01/2020 17:28 by the Oxbridge Notes in-house law team.

Judgement for the case Solle v Butcher

P agreed to lease his property to D for £250 per year but they later found out that because of the status of the property (to which they were both mistaken), rent was limited to £140 unless a notice of increase was served at the time the lease was offered, which had not been done. CA said that P could rescind the contract on an equitable basis, provided he agreed to offer D a new lease for £250 together with the notice of increase. 

Denning LJ: “A contract was liable in equity to be set aside, if the parties were under a common misapprehension either as to the facts or as to their relative and respective rights, provided that the misapprehension was fundamental and that the party seeking to set it aside was not himself at fault.” The court could set aside a contract where it was “unconscientious for the other party to avail himself of the legal advantage which he had obtained.” 

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