RECTIFICATION
INTRODUCTION:
A Court of Equity endeavors to get the true understanding of the parties and to give effect, so far as practicable, to their agreements as they are, and not as they merely seem to be. It may, therefore, correct a contract or instrument, if it is satisfied that the same does not truly express the intention of either party.
HISTORICAL PERSPECTIVE:
The jurisdiction of the court to rectify the defective instruments was enunciated in 1749 by Lord Hardwick in Amenable vs. Royal Exchange Insurance Co.
POSITION IN PAKISTAN
Now the specific relief by way of rectification of instruments has been codified in Pakistan
RELEVANT PROVISION
Chapter I Sections 31-34 of the Specific Relief Act, 1877.
MEANING
The word rectify means to purify, correct, or refine.
DEFINITION:
Rectification of instruments is defined as a form of specific relief in respect of contracts to correct the written contracts, where the contracts do not reflect the true mention of the parties due to fraud or mutual mistake.
According to the judgment of a case:
"A reform of a contract is collected rectification of the instrument containing that contract and it consists in bringing the documents in conformity with the actual prior agreement, and without such prior agreement there can be no rectification."
PRINCIPLE GOVERNING RECTIFICATION
The principle of rectification is based on the following maxim of equity:
“Equity looks to the intent rather than the form."
CIRCUMSTANCES UNDER WHICH A CONTRACT MAY BE RECTIFIED
When through fraud or mutual mistake of the parties, a contract or other instruments in writing do not truly express their intention, either party or his representative-in-interest may institute a suit to have the instrument rectified"
Facts:
A deed of sale duly executed and registered contained an agreement for re-purchase out of the space intended to insert the amount or re-purchase mainly was left blank. A suit was brought for specific performance and rectification of the deed.
Held: It was held that the omission to enter the price was either due to the fraud of the purchaser or to a mutual mistake.
FRAUD AS A GROUND OF RECTIFICATION
It is a well-accepted rule that where the error in the written instrument has been brought by the fraud of one party, the equity of rectification is obvious.
MISTAKES AS THE GROUND FOR RECTIFICATION
To rectify the instrument, the plaintiff must prove that it was through a mutual mistake of the parties that the contract in question did not truly express the intention of the parties, The Mistake must be mutual and not unilateral.
It must not be a mistake of law for rectification.
WHO CAN SUE FOR RECTIFICATION
Representatives in interest can sue for rectification of the instrument.
CONDITIONS OF RECTIFICATION
- The language used in the instrument is often misleading.
- What the instrument was intended to mean?
- What was the intended legal consequence?
DOCUMENTS THAT CAN BE RECTIFIED:
- Contracts
- Deeds of transfer
- Decree of court
- Other instruments
- Negotiable instruments
- Insurance policies
- Acknowledgment
- Settlements
EFFECT OF RECTIFICATION:
A deed rectified by the Court to conform to the due intent of the executing party at the moment of execution must be taken to be his deed and have been his deed, from the date of execution.
LIMITATION PERIOD:
There cannot be any time limit for the discovery of stake and fraud. At any time, when a mistake is discovered or a fraud comes to light, it is open to the parties affected to come to Court and institute a suit for the rectification of the mistake in the instrument.
SPECIFIC PERFORMANCE OF RECTIFIED INSTRUMENT:
A contract in writing may be reached and then, if the plaintiff so prayed in his plaint and the court thinks it fit, specifically enforced.
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