King & Finneran

In the matter of *King & Finneran*, Collier J of the Supreme Court of Victoria considered a dispute concerning the interpretation of a deed of settlement and release. The applicants, King and Finneran, sought to set aside the deed, alleging it was void due to a fundamental mistake. The respondents, who were the other parties to the deed, contended that the deed was valid and binding.

The central legal issue before the Court was whether a mutual mistake, alleged by the applicants to have been made by all parties at the time of entering into the deed, was so fundamental as to render the deed void. Specifically, the Court had to determine if the mistake related to the very foundation of the contract, such that the parties did not intend to be bound by the agreement as it was ultimately understood.

Collier J applied the principles governing the avoidance of contracts due to fundamental mistake. Her Honour considered the nature of the mistake alleged, examining whether it was a mistake as to the existence of a state of affairs that was essential to the contract. The Court analysed the terms of the deed and the surrounding circumstances to ascertain the common intention of the parties. Ultimately, Collier J found that the mistake alleged by the applicants was not of such a fundamental nature as to vitiate the deed, and therefore the deed remained valid and binding.