Van der Merwe v Goldman and another – WLR Daily

Posted April 20th, 2016 in contracts, law reports, mistake, rescission, setting aside by sally

Van der Merwe v Goldman and another [2016] EWHC 790 (Ch)

‘The claimant and the first defendant were husband and wife and the joint freehold owners of a house, where they lived. On 24 March the claimant and the first defendant executed a transfer of the title to the house to the claimant alone, for no stated consideration. On 27 March the claimant executed a deed of settlement whereby he settled the house on the terms of that deed and appointed himself and the first defendant as trustees of the settlement. The claimant also executed a transfer of the title to the house to himself and the first defendant as the trustees of the settlement. The principal beneficiaries of the settlement were the claimant, the first defendant, their children and remoter issue. Although the transactions were entered into in order to obtain certain tax advantages, in fact, as a consequence of a change in the law, they gave rise to a substantial tax liability. The claimant and first defendant brought a claim for an order setting aside the transfer of 24 March and the settlement and transfer of 27 March. In issue in the proceedings, to which the revenue was joined as a second defendant, was whether the transactions were governed by common law rules for declaring a contract to be void by reason of mistake or the equitable rules for setting aside a gift for mistake.’

WLR Daily, 11th April 2016

Source: www.iclr.co.uk