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Sender:
Lionel Smith
Date:
Fri, 21 Jul 2000 16:16:49 +0100
Re:
Mistakes

 

At 11:52 +0100 21/7/00, fergus farrow wrote:

How is that principle applied in a case where a donor would not have given his $1,000 to a particular charity if he had realised that an enemy of his was on the managing board of the charity? ... It may be argued that the donor, in the case under review, manifested by his conduct an irrevocable, unconditional intention to abandon his ownership of the money in favour of the charity. Conversely, it may be noted that if he did not want to give money to charities who have board members unacceptable to him he had to check that out before he gave his money....

In turning to another potential application of the general principle in question reference is made to a case where a payor mistakenly pays his gas bill a second time, in circumstances where the payee does not detect the mistake. Although such a payor may have had an ostensible intention to discharge an obligation, it can be argued by reference to the surrounding circumstances that he did not manifest by his conduct an irrevocable intention to discharge an obligation to the gas company because, as a matter of fact, he did not have one.

Anything can be argued :-), but what is it in the surrounding circumstances that allows us to say that the first mistake does not allow recovery but the second one does? I would suggest, nothing. That is a conclusion of law, and my view is that any rule imposing on payors the risk of some mistakes (eg who is on the board) but not others (eg whether a debt was due) must be justified as a rule of law which distinguishes between different kinds of mistakes. If you try to do it with a single legal principle, the differing results said to be based on factual differences, you are left unable to explain why a person is bound to inquire into a board of directors but not into the state of his account with the public utility.

 

Lionel


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