Facts
- A rogue, Alfred Blenkarn, fraudulently ordered handkerchiefs from Cundy, the claimant, using the name and address of the reputable firm "Blenkiron & Co."
- Blenkarn sent his orders by post, listing his address as 37 Wood Street, Cheapside, instead of Blenkiron & Co.'s address at 123 Wood Street.
- Cundy, believing he was transacting with Blenkiron & Co., sent the goods to the address provided by Blenkarn.
- Blenkarn sold the handkerchiefs to Lindsay, the defendant, who purchased them in good faith.
- Cundy, not having been paid, sought to recover the goods from Lindsay, arguing that the contract with Blenkarn was void due to a mistake regarding the other party's identity.
Issues
- Whether a contract formed through correspondence is void when one party is mistaken as to the identity of the other, due to the fraudulent actions of a third party.
- Whether the absence of a true consensus ad idem (meeting of the minds) prevented a valid contract from being formed between Cundy and Blenkarn.
- Whether Lindsay, having purchased the goods in good faith, obtained valid title.
- Whether Cundy could recover the goods from Lindsay under the tort of conversion.
Decision
- The House of Lords held that the contract between Cundy and Blenkarn was void for unilateral mistake as to identity.
- Lord Cairns LC emphasized that Cundy intended to contract solely with Blenkiron & Co., not Blenkarn; thus, there was no agreement between Cundy and the rogue.
- The absence of consensus ad idem meant no valid contract was formed and, consequently, no title passed from Cundy to Blenkarn.
- Blenkarn, lacking title, could not transfer good title to Lindsay, making Lindsay liable for conversion despite acting in good faith.
Legal Principles
- A unilateral mistake as to identity, where fundamental and induced by fraud, renders a contract void, not merely voidable.
- Consensus ad idem (a meeting of the minds) is an essential element for the formation of a valid contract; absence of this negates contractual agreement.
- In sales through correspondence, a mistaken identity may void the contract if the seller intends to contract only with a specific party.
- Where a contract is void, no legal title passes, preventing subsequent bona fide purchasers from acquiring valid ownership.
- The tort of conversion protects the true owner's rights where goods have been transferred without proper title.
- The distinction between written contracts (as in Cundy v Lindsay) and face-to-face dealings (as in Phillips v Brooks) affects whether a contract is considered void or voidable.
- Modern application recognizes the difficulty in distinguishing mistakes as to identity (void) from mistakes as to attributes (voidable) and limits the doctrine’s scope accordingly.
Conclusion
Cundy v Lindsay confirms that a contract is void for fundamental unilateral mistake as to identity in written transactions, such that a rogue cannot pass title even to good faith purchasers, underscoring the critical role of consensus ad idem in contract formation and title transfer.