Where both parties to an agreement are under a mistake as to a matter of fact essential to the agreement, under Section 20
AThe agreement is voidable at the option of the mistaken party only
BThe agreement is voidable at the option of either party
CThe agreement is void
DThe agreement is fully enforceable
Answer & Solution
Correct answer: C. The agreement is void
Section 20: bilateral mistake of fact as to an essential matter makes the agreement void (ab initio). A unilateral mistake (s22) generally does not invalidate the contract.
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