Raffles v. Wichelhaus

Raffles v. Wichelhaus is a landmark contract law case from 1864 that illustrates the principle of "mutual mistake." It involved a contract for the sale of cotton to be shipped on a ship named "Peerless." However, there were two ships with that name departing at different times. The seller and buyer had different ships in mind, leading to a misunderstanding. The court ruled that since both parties were confused about which ship was intended, there was no true agreement, making the contract unenforceable. This case highlights the importance of clear communication in contracts.