Part 2
Contracts legislation
Contractual mistakes
31Rights of third persons not affected
Nothing in an order made under this subpart invalidates a disposition of property referred to in subsection (2) if the person to whom the disposition was made—
- was not a party to the mistaken contract; and
- had not, at the time of the disposition, notice that the property was the subject of, or the whole or part of the consideration for, a mistaken contract; and
- otherwise acted in good faith.
The dispositions are—
- a disposition of property by a party to a mistaken contract for valuable consideration:
- a disposition of property made by or through a person who became entitled to the property under a disposition to which paragraph (a) applies.
Nothing in an order made under this subpart affects subpart 5 of Part 2 of the Property Law Act 2007 (which relates to the assignment of things in action).
In this section, mistaken contract means a contract entered into in the circumstances described in section 24(1)(a).
See section 9 (which defines disposition).