Shogun Finance Ltd v Hudson Shogun Finance Ltd v Hudson Shogun Finance Ltd v Hudson [2003] UKHL 62 is an English contract law case decided in the House of Lords, on the subject of mistaken identity as a basis for rescission of a contract. The case has been the subject of much criticism in failing to effectively clarify the area of mistake to identity. A rogue went to a dealer to buy a Mitsubishi Shogun on hire purchase. The rogue told them that his name was Mr Patel and produced Mr Patel’s driving licence. The dealer communicated with Shogun Finance, which did a credit check
Shogun Finance Ltd v Hudson would be protected. The result of "Shogun Finance Ltd v Hudson" is that the area of mistake to identity retains the 'face to face' distinction: contracts of immediate vicinity differ from contracts made over distance. Such a distinction has been labelled "artificial and unfair" to third parties, who bear the entire loss if, at least in the instant case, it is argued that Shogun Finance Ltd had far better means to uncover the rogue's fraud than the independent purchaser; in any case, the original seller is usually in the better position to protect and insure against such risks. Shogun Finance