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<p class="banner-heading-text-two-line"><span>Cases of Fraudulent Personation</span><br><span class="banner-sub-heading">Module I: Contract Law EssentialsâMistake</span></p>
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<p><span class="padded-dropcap">T</span>his case established the position that in face-to-face transactions, there is no mistake as to the identity of the parties, even if one party is fraudulently misrepresenting themselves. The court held that when a contract is made in person, the seller’s intention is to contract with the individual physically present, regardless of any false name or fraudulent statements used by that individual. Consequently, the contract is voidable due to the fraud, not void ab initio.</p>
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<h2 style="text-align: center;">[1919] 2 K.B. 243</h2>
<h2 style="text-align: center;">Phillips v. Brooks, Limited</h2>
<p>On 15 April 1918, a man named North entered Phillipsâ jewellery shop and said, âI am Sir George Bulloughâ. He wrote a dud cheque for ÂŁ3000 to pay for some pearls and a ring. He said he lived in St. Jamesâs Square. Mr Phillips checked the phone directory and found there was someone there by that name. Mr Phillips asked if he would like to take the jewellery with him, and Mr North said he would leave the pearls but take the ring âfor his wifeâs birthday tomorrowâ. Mr North then pawned the ring to Brooks Ltd for ÂŁ350. When the false cheque was dishonoured, Phillips sued Brooks Ltd to get the ring back.</p>
<p>It was found that whilst the fraudster had indeed fraudulently purchased the ring there was no mistake as to identity due to the fact this contract was made face-to-face. Whilst fraudulent statements were made, the identity of the fraudster could not be considered âmistakenâ. Importantly, a fraudulent contract is voidable (not void) and permits property to pass to bona fide third-party meaning Brooks Ltd was the legal owner of the ring.</p>
<p>The Court relied on the expressions used in the judgment of Morton C. J. seem to me to fit the facts in this case: âThe minds of the parties met and agreed upon all the terms of the sale, the thing sold, the price and time of payment, the person selling and the person buying. The fact that the seller was induced to sell by fraud of the buyer made the sale voidable, but not void. He could not have supposed that he was selling to any other person; his intention was to sell to the person present, and identified by sight and hearing; it does not defeat the sale because the buyer assumed a false name or practised any other deceit to induce the vendor to sell.â</p>
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<p>Access to full judgment below.</p>
<p><span style="display: inline-block; font-size: 28px; color: #000000;">đ</span><a href="https://www.scconline.com/EbcExLogin/quhLOb5I" target="_blank" rel="noopener"> Phillips v. Brooks, Limited, [1919] 2 K.B. 243</a>.</p>
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