The Club Schanck Resort Company Limted v Cape Country Club Pty Ltd

(2001) 3 VR 526; [2001] VSCA 2

Victorian Court of Appeal

Built by Barristers,
For Australian Law.

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Interrogate

Catchwords

1. Equity
2. › Rectification
3. › Common mistake
4. › Distinction between mistake in embodiment of intention and mistake as to consequences of agreement
5. › Whether rectification available where document correctly expresses common intention but parties mistaken as to legal effect
1. Equity
2. › Rectification
3. › Limits of remedy
4. › Whether court may rectify document to create different agreement from that intended by parties
5. › Whether rectification available where no form of words could achieve parties' actual intention
1. Contract
2. › Terms of settlement
3. › Construction
4. › Dispute resolution clause
5. › Reference to tribunal without jurisdiction

Quick Take

Rectification is not available where a document correctly expresses the parties' common intention but the parties were mistaken as to the legal consequences of their agreement. The distinction between mistake in the embodiment of intention (which supports rectification) and mistake as to the effect or consequences of a correctly expressed agreement (which does not) is critical. Additionally, rectification cannot be used to substitute a different agreement from that which the parties actually intended, nor to provide the 'next best' alternative where no form of words could achieve the parties' actual intention.