Raffles v Wichelhaus

Facts

Cotton was sold 'to arrive ex Peerless from Bombay'. Two ships of that name sailed from Bombay, one in October and one in December. Each party meant a different ship.

Issue

Was there a contract?

Held

No. There was no agreement on the subject matter.

Principle

Where the parties are at cross purposes about what is being sold, and neither meaning is preferable, there is no contract.

Why it matters

It is the mutual mistake case.

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