Monday, 3 August 2015

Induced Mistake- Denny v Hancock

   Often sellers can induce mistake on the part of buyers, this is precisely what happened in the case of Denny v Hancock (1870). The buyer had assumed that three trees were part of the property when in fact there was an iron fence which separated them- but this was concealed by shrubbery. The plans provided by the vendor were unclear as to whether the trees were part of the property, but any reasonable person would have assumed that they were part of the land. The buyer, who had a particular interest in the trees, went on to bid on the property at auction and was successful. He then discovered that the trees were not part of the land he had purchased and refused to continue with the transaction. The plaintiffs sued for breach of contract, and were issued with a specific order of performance. The buyer appealed, stating that his decision to purchase the property was based upon being misled by the plans provided by the seller. It was held that a specific performance order could not be issued on the grounds that the mistake made by the buyer had been undoubtedly induced by the seller, therefore they were not entitled to it as a remedy as it was their own fault that the buyer had made the assumption regarding the trees. This is an instance of crassa negligentia on the part of a vendor.

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