Palo Alto Ltd and others v Alnor Estates Ltd

Mistake – Rectification. In the light of the relevant authorities, dishonesty was not a requirement of rectification based on unilateral mistake where the defendant's knowledge had been based on actual knowledge. Applying that principle, the Upper Tribunal (Tax and Chancery Chamber) dismissed the tenants' appeal against the decision of the Land Registration Division of the First-tier Tribunal (Property Chamber) to allow the landlord's application for rectification of a lease for unilateral mistake where although there had been no proof of dishonesty by the tenant, the tenant had had actual knowledge of the mistake.

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