Tuesday Law Report: Court Had No Jurisdiction to Grant Recission of Contract for Common Mistake ; 22 October 2002 Great Peace Shipping Ltd V Tsavliris Salvage (International) Ltd ([2002] EWCA Civ 1407) Court of Appeal, Civil Division (Lord Phillips of Worth Matravers, Master of the Rolls, Lord Justice May and Lord Justice Laws) 14 October 2002

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THERE WAS no equitable jurisdiction to grant recission of a contract on the ground of common mistake where that contract was valid and enforceable on ordinary principles of common law.

The Court of Appeal dismissed the appeal of Tsavliris Salvage (International) Ltd against a decision that it was liable to Great Peace Shipping Ltd under a contract of hire of one of its vessels.

The defendant learned that the Cape Providence had suffered serious structural damage in the south Indian Ocean whilst en route to China and offered its salvage services, which were accepted. It approached a firm of brokers to find a tug. A tug was found, which would take five or six days …