Bell v Lever Bros [1932]

Facts

• Bell & Snelling worked for Lever Bros, but contrary to their employment contracts also traded for personal profit
• After completing their objectives, Bell & Snelling were given large payoffs are were made redundant

Issue

• Could the redundancy contracts be void for common mistake when Lever Bros later found out about the personal trading, which would have allowed employment termination with no payoff?

Decision

• No

Reasoning

• The mistake was not an “essential and integral element of the subject matter of the contract”
• The personal profit made was negligible compared to the profit Bell & Snelling made for Lever Bros