Gillis Truck Leasing and Sales Ltd. v. Woody's Auctions Ltd.

Gillis Truck Leasing and Sales Ltd. v. Woody's Auctions Ltd.

Applying an objective reasonable person test the adjudicator found a mutual mistake existed as both parties were mistaken about what was being sold; that lack of genuine consent meant no contract was formed and the Claimant was entitled to return of the purchase money and costs.

Source-derived case information.

Citation
2007 NSSM 2
Parties
Claimant: GILLIS TRUCK LEASING AND SALES LIMITED; Defendant: WOODY'S AUCTIONS LIMITED
Court
Nova Scotia Small Claims Court
Jurisdiction
Canada
Judgment Date
1 January 2007
Procedural Posture
Small Claims Court / Decision/order
Outcome
Claim allowed; judgment for Claimant for returned purchase price and court costs.
Legal Topics
Mutual Mistake, Caveat Emptor, Offer and Acceptance, Rescission
Source Language
english
Contract Law Auction Law Commercial Law Mutual Mistake Caveat Emptor Offer and Acceptance Rescission

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Parties

GILLIS TRUCK LEASING AND SALES LIMITED

Claimant

WOODY'S AUCTIONS LIMITED

Defendant

Procedural Posture

Small Claims Court / Decision/order

Legal Issues

  1. 1 Whether genuine consent existed to form a contract
  2. 2 Whether a mutual mistake vitiated the contract
  3. 3 Whether the doctrine of caveat emptor precludes relief

Ratio Decidendi

Applying an objective reasonable person test the adjudicator found a mutual mistake existed as both parties were mistaken about what was being sold; that lack of genuine consent meant no contract was formed and the Claimant was entitled to return of the purchase money and costs.

Court Disposition

Claim allowed; judgment for Claimant for returned purchase price and court costs.

Orders

  • Defendant to pay Claimant $1,599.65
  • Defendant to pay Court costs $80.00