Couturier v Hastie

Error creating thumbnail:

C%C3%A9r%C3%A9ales aplaties

Couturier v Hastie is a landmark case in English contract law that deals with the issue of mistake in the formation of a contract. The case was decided by the House of Lords in 1856.

Facts

The case involved a contract for the sale of a cargo of corn that was being shipped from Salonika to England. The seller, Couturier, and the buyer, Hastie, entered into a contract for the sale of the corn while it was still in transit. Unbeknownst to both parties, the corn had already been sold by the ship's master at a port along the way due to its deteriorating condition.

Judgment

The House of Lords held that the contract was void because the subject matter of the contract, the cargo of corn, did not exist at the time the contract was made. The court reasoned that there was a fundamental mistake as to the existence of the subject matter, which rendered the contract void ab initio (from the beginning).

Significance

The decision in Couturier v Hastie is significant in the context of contract law as it established the principle that a contract is void if the subject matter does not exist at the time the contract is made. This case is often cited in discussions of common mistake and the doctrine of res extincta.

Related Cases

• Bell v Lever Brothers Ltd
• Great Peace Shipping Ltd v Tsavliris Salvage (International) Ltd
• McRae v Commonwealth Disposals Commission

See Also

• Mistake (contract law)
• Common mistake
• Res extincta
• Contract law