Cole v. Pope

Cole v. Pope

Although innocent misrepresentation alone does not justify rescission of an executed sale of land, the mutual mistake here produced a complete failure of consideration (the purchaser received nothing because the property was subject to prior claims), and equity therefore rescinds the completed contract and orders repayment of the purchase money despite absence of fraud.

Citation
(1898) 29 SCR 291
Parties
Appellant/defendant: John Y. Cole; Respondent/plaintiff: Rufus H. Pope
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
14 December 1898
Procedural Posture
Appeal Contract (rescission) / On Appeal to the Supreme Court of Canada From the Supreme Court of British Columbia; Final Judgment Delivered
Outcome
Appeal dismissed; judgment for respondent affirmed.
Legal Topics
Innocent Misrepresentation, Mutual Mistake, Failure of Consideration, Rescission of Executed Contract, Restitution of Purchase Money
Source Language
English
Contract Equity Property Mining Law Innocent Misrepresentation Mutual Mistake Failure of Consideration Rescission of Executed Contract +1 more

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Legal principles 3 Authorities cited 15 Party arguments 2 Amounts and remedies 1
Sign in to unlock

Parties

John Y. Cole

Appellant/defendant

Rufus H. Pope

Respondent/plaintiff

Procedural Posture

Appeal Contract (rescission) / On Appeal to the Supreme Court of Canada From the Supreme Court of British Columbia; Final Judgment Delivered

Legal Issues

  1. 1 Whether an executed contract for sale of land can be rescinded for mere innocent misrepresentation
  2. 2 Whether a mutual mistake resulting in complete failure of consideration justifies rescission of a completed sale
  3. 3 Whether vendor must refund purchase money when the property sold is in fact non-existent or already subject to prior claims

Ratio Decidendi

Although innocent misrepresentation alone does not justify rescission of an executed sale of land, the mutual mistake here produced a complete failure of consideration (the purchaser received nothing because the property was subject to prior claims), and equity therefore rescinds the completed contract and orders repayment of the purchase money despite absence of fraud.

Court Disposition

Appeal dismissed; judgment for respondent affirmed.

Orders

  • Appeal dismissed with costs
  • Contract rescinded and respondent awarded repayment of purchase money in the sum of $5,250