Traditional Structures Ltd v HW Construction Ltd

Traditional Structures Ltd v HW Construction Ltd

The court found that the defendant had actual knowledge of the claimant's mistake in omitting the cladding price, failed to draw attention to it, and acted unconscionably. Rectification was granted to include the cladding price. Alternatively, the claimant was entitled to a reasonable price for the cladding work under an implied term, as all other contract terms were sufficiently detailed.

Parties
Claimant: Traditional Structures Limited; Defendant: H W Construction Limited
Jurisdiction
England and Wales
Judgment Date
26 May 2010
Procedural Posture
Civil / Judgment After Trial
Outcome
Claim allowed
Legal Topics
Rectification for Unilateral Mistake, Implied Terms, Reasonable Price, Construction Contracts
Contract Law Equity Rectification for Unilateral Mistake Implied Terms Reasonable Price Construction Contracts

Case Brief

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Parties

Traditional Structures Limited

Claimant

H W Construction Limited

Defendant

Procedural Posture

Civil / Judgment After Trial

Legal Issues

  1. 1 Whether the contract should be rectified for unilateral mistake to include the omitted price for cladding
  2. 2 Whether the claimant is entitled to a reasonable price for cladding under an implied term

Ratio Decidendi

The court found that the defendant had actual knowledge of the claimant's mistake in omitting the cladding price, failed to draw attention to it, and acted unconscionably. Rectification was granted to include the cladding price. Alternatively, the claimant was entitled to a reasonable price for the cladding work under an implied term, as all other contract terms were sufficiently detailed.

Court Disposition

Claim allowed

Orders

  • Rectification of the contract to include the cladding price
  • Alternatively, payment of a reasonable price for the cladding work