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      • Not fulfilling a contract, which is also known as a breach, can result in serious consequences, including a lawsuit. When a contract is not fulfilled, it means one of the parties has failed to meet their contractual obligations.
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    • Doctrine of Mistake
    • Remedy by Construction
    • Remedy by Rectification
    • Fairstate
    • Facts
    • Decision
    • Analysis
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    The doctrine of mistake in contract law encompasses both mistakes of law and mistakes of fact. Broadly speaking, there are three types of mistake of fact: 1. common mistake – where both parties make the same mistake based on a shared misconception of an underlying fact; 2. unilateral mistake – where one party makes a mistake and the other party has...

    If there is an obvious drafting mistake in a contract, the court can construe the contract in a way that will correct the mistake, provided it is a clear mistake on the face of the contract, and it is obvious what correction is required to remedy the deficiency. The court’s interpretation of a contract should be on an objective basis. The question ...

    Rectification is an equitable remedy employed at the court’s discretion when looking at a written contract. The remedy is available where there has been a mistake in effectively recording the terms agreed between the parties. If a contract fails to reflect the parties’ intentions, the court can rectify it by ordering its wording to be changed. Rect...

    The scope of the court’s power to remedy deficiencies in a contract, by way of rectification and construction, has recently been clarified in Fairstate.

    In Fairstate, the claimant (Fairstate), the owner of a block of residential flats, entered into a management agreement with the defendant company General Enterprise & Management Ltd (GEML). At the same time, the second defendant, the director of GEML (Atef Sarian), signed a personal guarantee (the guarantee). As a preliminary issue, the court was a...

    The judge, Richard Salter QC, held that the mistakes in the guarantee were so fundamental and extensive that they could not be sufficiently cured, either by way of a purposive reading of the contract as to its true construction, or by way of rectification. The guarantee was therefore ineffective as a matter of contract, and in any event would have ...

    It was not disputed that the general contractual approach to construction should be applied to a contract of guarantee, and the objective approach was therefore applied. Salter QC stated that due to the sheer length and catalogue of the mistakes, to give effect to the guarantee would go beyond interpretation of the contract terms, and ‘would instea...

    Fairstatehighlights the importance of effectively documenting pre-contract negotiations to clearly demonstrate the parties’ intentions. It serves as a useful reminder that poor drafting and consequential mistakes will not always be remedied by the court. It also demonstrates how care should be taken with selecting appropriate precedents when drafti...

  2. The employer should tell the employee of the outcome as soon as possible and in writing, for example in a letter or email. If the grievance involved other people in the organisation and it was upheld, the employer might need to start a disciplinary procedure.

  3. Where your complaints are not upheld, your grievance may result in a Grievance Settlement Agreement, which our Employment Law team can assist you with while ensuring that you obtain a fair grievance settlement amount.

  4. Problems can arise if: an employer tries to change a contract without agreement, or re-employs someone on new terms and conditions. there is a breach of contract where one of...

  5. Jan 9, 2023 · This means if you win your case at tribunal, they would have to pay extra compensation. This is called an ACAS uplift and can be up to 25% of the original award amount. If they ignore the grievance process outlined in your contract, you could also make a claim for breach of contract.

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