Lord Warrington of Clyffe. v.LEVER BROTHERS, LTD., AND ANOTHER. The main issue in this case was whether the redundancy contract that was created and accepted by Mr Bell, could be void by common mistake, due to later finding out about his personal trading. Facts: Lever Bros appointed the two defendants to run a second company, Niger. House of Lords Bell was employed by Lever Brothers to act as chairman of the Niger Company. In order for the contract to be void by common mistake the mistake must involve the actual subject-matter of the agreement and must be of such a "fundamental character as to constitute an underlying assumption without which the parties would not have entered into the agreements". - Just know that there are a … This decision is the leading English authority on the effect of … [citation needed] Gray's Inn. His role was of the chairman in a subsidiary company of the respondents. Leaf v Int Galleries [1950] 2 KB 86 Case summary . Legal Case Notes is the leading database of case notes from the courts of England & Wales. Bell v Lever Brothers [1932] AC 161. MY LORDS, This is an appeal by the Appellants Ernest Hyslop Bell and Walter Edward Snelling (the Defendants in the action) from a unanimous judgment of the Court of Appeal (Scrutton Lawrence and Greer L.JJ.) Bell v Lever Bros [1932] Benn v Hardinge [1992] Bentley v Brudzinski [1982] Bentley v Craven (1853) Berkeley v Hardy (1826) Berrisford v Mexfield Housing Co-operative Ltd [2011] Beswick v Beswick [1967] Bici v Ministry of Defence [2004] Billings & Sons v Riden [1958] Billson v Residential Apartments [1992] Binions v Evans [1972] Bird v Jones [1859] Like Student Law Notes. (A question mark next to a word above means that we couldn't find it, but clicking the word might provide spelling suggestions.) Under the contract of employment the appointments were to run 5 years. Bell v Lever Bros [1932] AC 161 Case summary . In the point of view of Bell and Snelling, it is the right of entitling the "Golden Parachutes" they are selling. Bell v lever brothers ltd1932MISTAKEMistake is a situation when both parties to the agreement believe a false fact about the essential matters in relation to their agreement. Tesco Stores Limited v Pook and others [2004] IRLR 618 Wright J therefore held the compensation agreements were void. Bell v Lever Bros (1932) AC 161. This case is about common mistake. Two employees of the respondent company were sued by the company for the return of certain large payments which had been made to them as compensation for terminating their service agreements. This case considered the issue of mutual mistake and whether or not a mistake as to the quality of subject matter of a contract was sufficient to make the contract void. The case put a high standard on the finding of common mistake. Bell v Lever Brothers Ltd [1932] A.C. 161 is an English Contract Law case concerning the common mistake. Background . Cases & Articles Tagged Under: Bell v Lever Bros [1931] UKHL 2 | Page 1 of 1. 2. This short essay submits that the above assertion is true as far as ‘mistake’ under the law of contract is concerned. A mutual mistake as to some fact which, by the common intention of the parties to a contract, whether expressed or implied, constitutes the underlying assumption without which the parties would not have made the contract they did, and which, therefore, affects the substance of the whole consideration, is sufficient to render the contract void. Appeal from – Bell v Lever Brothers Ltd CA ([1931] 1 KB 557) The court was asked as to the duties of a company director: ‘It does not seem to me open to question that the directors of a company occupy a fiduciary position towards the company, with the result that they cannot retain a benefit they have . Jump to: navigation, search. Different possibilities: a) Contract remains in force and both parties must perform their obligations (with any failure to do so resulting in a breach of contract) Bell v Lever Bros Ltd [1932] AC 218 Practical Law Resource ID 1-625-3161 (Approx. Bell v Lever Brothers Ltd [1932] AC 161 is an English contract law case decided by the House of Lords.Within the field of mistake in English law, it holds that common mistake does not lead to a void contract unless the mistake is fundamental to the identity of the contract. Bell v Lever Brothers [1932] AC 161. But it is at the risk now of an application under section 210 if he subordinates the interests of the one company to those of the other. However having discussed Bell v Lever Bros And the older case law it is essential that you go on to discuss the more recent case of The Great Peace and the fivefold test set out by Lord Phillips. The mistake must be essential to the identity of the contract. 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