“Written contracts naming a real person who never consented are void; face-to-face dealings create voidable contracts.”
The House of Lords held for Shogun Finance by majority (3:2). The written agreement was void as it was made with the real Mr Patel (who never agreed) not the fraudster, so Hudson acquired no title.
A fraudster impersonated Mr Patel in a Leicester car showroom, using stolen identification to enter a hire-purchase agreement with Shogun Finance. The agreement named Mr Patel as hirer. The fraudster sold the car to innocent purchaser Hudson before defaulting on payments.
Whether the hire-purchase agreement was void for mistake as to identity or voidable for fraud, and whether Hudson could acquire title under the Hire Purchase Act 1964.
The majority distinguished between face-to-face dealings (Lewis v Averay) and written contracts (Cundy v Lindsay). In written contracts, the offeree is identified by the document itself. Since Mr Patel never agreed to contract, no agreement existed with anyone.
This House of Lords decision settled the law by confirming that Cundy v Lindsay remains good law for written contracts, while Lewis v Averay applies to face-to-face dealings. It provides the definitive modern statement on identity mistakes in contract formation.
The distinction between written and face-to-face dealings is crucial: written contracts directed to specific non-consenting parties are void, while face-to-face contracts are presumed valid but voidable for fraud.
The House of Lords held that the hire-purchase agreement was void because it was addressed to Mr Patel who never consented, so the innocent purchaser acquired no title.
It provides the definitive modern statement on identity mistakes, settling the law by confirming different approaches for written versus face-to-face contracts.
The minority criticized the distinction between written and face-to-face dealings as artificial and argued for a consistent approach protecting innocent purchasers in all cases.
OSCOLA Citation
Shogun Finance Ltd v Hudson [2003] UKHL 62
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[2026] UKSC 1
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