Mistake as an element in vitiating securities supporting debts to financial institutions: a confluence of legal and equitable principles
RIS ID
115086
Abstract
Mistake in contracts of suretyship supporting financial institution debts, like other contracts, has a narrow and technical meaning. There is no general right to be released from such a surety contract because one, or both, of the parties made a mistake or error of judgement. At common law, a court would not set aside a contract merely because a party to that contract later discovers facts, which, if known, would have dissuaded that party from entering into the contract. However, a court of equity will grant, at its discretion, orders refusing specific performance because of mistake, setting aside a surety contract upon appropriate terms and conditions or rectifying the contract if the terms were wrongly recorded.
COinS
Publication Details
C. Y.C. Chew, 'Mistake as an element in vitiating securities supporting debts to financial institutions: a confluence of legal and equitable principles' (2017) 32 (5) Journal of International Banking Law and Regulation 173-180.