Raffles v. Wichelhaus [1864]
2 H. & C. 906, 159 Eng. Rep. 375 (Ex. 1864) · Court of Exchequer · England and Wales
Summary
Classic latent ambiguity and mutual assent case.
Facts
A cotton contract referred to a ship named Peerless, but two ships with that name sailed at different times.
Issue
Was there mutual assent when the parties meant different ships?
Held
No enforceable contract was found on the pleaded ambiguity.
Ratio Decidendi
Mutual misunderstanding about a material term can prevent contract formation.
Reasoning
Material latent ambiguity prevented a meeting of the minds.
Significance
Classic latent ambiguity and mutual assent case.
Related Cases
No related cases listed.
Exam Tips
Review the ratio and reasoning before applying this case in problem questions.