What is the ratio in Solle v Butcher?

Where common mistake does not void a contract at law but makes its enforcement unconscionable, equity may grant rescission on terms to achieve a fair result.

What did the court decide in Solle v Butcher?

The Court of Appeal held that the lease could be rescinded in equity due to the parties' common mistake about rent control, but allowed a new lease at the correct rent.

Why is Solle v Butcher important for contract law?

It created the doctrine of equitable mistake, providing more flexible relief than common law, though this approach was later rejected in Great Peace Shipping v Tsavliris Salvage.

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