Section 26 of SRA : Section 26: When Instrument May Be Rectified

Explanation using Example

Imagine Sarah and John enter into a written contract where Sarah agrees to sell her car to John for $10,000. However, due to a typographical error, the contract mistakenly states the sale price as $1,000. Both parties intended the sale price to be $10,000, and the mistake was not noticed until after the contract was signed.

In this scenario, either Sarah or John can file a lawsuit to have the contract rectified to reflect the actual agreed price of $10,000. If Sarah sues John for the payment of $10,000, she can also claim in her lawsuit that the contract should be rectified. Conversely, if John is sued by Sarah for the full amount, he can defend himself by asking the court to rectify the contract to show the correct price.

If the court finds that the written contract does not express the real intention of Sarah and John due to the typographical error, it may order the contract to be changed to state the correct price of $10,000, provided this correction does not unfairly affect any third party who may have relied on the incorrect price in good faith.