Coshott v Prentice

In *Coshott v Prentice*, the Supreme Court of New South Wales was asked to determine a dispute between the plaintiff, Coshott, and the defendant, Prentice. The core of the disagreement concerned the interpretation and enforceability of a deed of settlement entered into by the parties, which aimed to resolve prior litigation.

The primary legal issue before the Court was whether the deed of settlement was valid and binding, or if it was vitiated by a fundamental mistake. Specifically, the Court had to consider whether the parties had entered into the deed under a shared, mistaken belief about a crucial fact that underpinned their agreement, and if so, whether that mistake was of such a nature as to render the contract void or voidable.

Judge Driver found that the parties had indeed entered into the deed of settlement under a common and fundamental mistake regarding the existence of a particular debt. This mistake was central to the parties' understanding of the settlement terms and their respective rights and obligations. Applying established principles of contract law concerning mistake, the Court determined that the deed was void *ab initio* due to this fundamental misapprehension of fact.

Consequently, the Court made orders setting aside the deed of settlement.