What is the test for determining contractual intent and mutual and common mistake?

British Columbia, Canada


The following excerpt is from Greater Vancouver Water District v. SSBV Consultants Inc., 2014 BCSC 1148 (CanLII):

At the root of the analysis of contractual intent and mutual and common mistake is the general principal stated by Blackburn J. in the following classic passage from Smith v. Hughes (1871), L.R. 6 Q.B. 597 at 607: …If, whatever a man's real intention may be, he so conducts himself that a reasonable man would believe that he was assenting to the terms proposed by the other party, and that other party upon that belief enters into the contract with him, the man thus conducting himself would be equally bound as if he had intended to agree to the other party's terms.

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