Connolly Ltd sought rectification of a contract for the sale of a piece of land for mixed commercial and residential development or damages for deceit. The purchaser was Bellway Homes Ltd. Connolly contracted to sell Bellway a development site subject to planning permission being granted. It was agreed between Connolly and Bellway that the purchase price would be indexed to ensure that, pending completion of the sale, Connolly would share in any increase in the value of the land. Bellway was agreeable, provided an allowance was made against the increase in the value of the land for any increase in building costs. A formula for the calculation of the indexation was inserted into the contract document.

After planning permission was obtained, the application of the indexation formula did not result in any uplift to the sale price.

Should the contract be rectified on the basis of either mistake? Alternatively, could Connolly recover damages for deceit?