Rectification … bite size

As a general rule, someone who signs a contract is bound by it even if they haven’t read or understood it.

But this is not always the case.

Where part of a contract does not accurately reflect the intention of the contracting parties, then the parties can apply for the equitable remedy of rectification.

Rectification allows a contract to be altered so that it accords with the true agreement the parties reached.

Rectification will only apply where the following 3 conditions are met:

• The contracting parties both intend that a particular term of the contract would either be present or absent when the contract was put in writing
• The contract was put in writing
• A mistake was made when the contract was put in writing to include or exclude the particular term and that did not reflect the common intention of the parties.

Key cases:

Chartbrook v Persimmon Homes (2009)