The parties entered into an installment contract for sale of meal of a certain quality. Provision was made for arbitration of disputes arising under the agreement. After several deliveries, the vendor consented to cancellation of the remainder of the contract upon the buyer's agreeing to pay £782 at four specified dates. This agreement was made under mutual mistake as to the defective quality of the goods, which would have justified repudiation of the contract. Before the adulteration was discovered, the seller had paid £500 for a release from a supply contract with a third person and the buyer had paid twice under the cancellation contract. Against the seller's action for the remaining payments, the buyer counterclaimed for rescission of the cancellation contract with restitution and damages for breach of the original contract. Held, rescission for mutual mistake denied. Monro & Co. v. Meyer, [1930] 2 K. B. 312.

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