A Famous Decision Involving Mistake in the Meaning of Contractual

question 47

True/False

A famous decision involving mistake in the meaning of contractual terms is Raffles v. Wichelhaus , a case involving two ships with the same name which were confused by the two parties. Neither party was at fault, and the court held that no contract existed.

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Definitions:

Special Journals

Accounting journals designed for recording a specific type of transaction in a detailed manner, such as sales or purchases.

General Journal

A bookkeeping journal where all types of financial transactions are initially recorded, before being transferred to specific accounts in the general ledger.

Closing Journal Entries

Entries made at the end of an accounting period to transfer balances from temporary to permanent accounts.

Revenue Journal

An accounting ledger that records all transactions involving the income earned by the business, specifically from its operations and activities.