Betty signed a consignment of wool from Barlambs Ltd signing the letter to give the impression that the order came from Cosy Knitwear, a prestigious knitwear manufacturer; a firm well known and trusted by Barlambs Ltd. Barlambs only conducted business with certain companies within the area, Cosy knitwear being one of them. Betty turned out to be a rogue. Would the contract be valid?
The contract would not be void by reason of the caveat emptor rule
The contract will be void on the grounds of illegality.
The contract will be void due to lack of consideration
—>> The contract will be void as Barlambs wool had only intended to do business with Cosy Knitwear. There was therefore a mistake concerning the identity of the other party to the contract.