Equitable mistake (Middleton v Middleton Enterprises (Holdings) Ltd)

Richard Wilson QC, James Weale and Oliver Jones have written an article on 'Equitable Mistake' in the case of Middleton v Middleton Enterprises (Holdings) Ltd.  In the Private Client analysis published by LexisPSL, the authors consider the following areas:

• Equitable mistake (Middleton v Middleton Enterprises (Holdings) Ltd)
• What are the practical implications of this case?
• What was the background?
• What did the court decide?
• Case details

The court held that a series of interest-free loan agreements between a company’s shareholders and the company could be set aside for mistake under the equitable principles applicable to voluntary dispositions as set out in Pitt v Holt. The decision makes clear that the court will look at the substance of a transaction, and not simply its form, in deciding whether, on a claim for mistake, the equitable or common law principles should apply. 

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