Under Section 20, an agreement is void where
A{'text': 'One party is under a unilateral mistake as to any foreign law', 'label': 'A'}
B{'text': 'A minor of about seventeen years executes the agreement freely', 'label': 'B'}
C{'text': 'The consideration is inadequate compared with the promise made', 'label': 'C'}
D{'text': 'Both parties share a mistake as to a fact essential to the agreement', 'label': 'D'}
Answer & Solution
Correct answer: D. {'text': 'Both parties share a mistake as to a fact essential to the agreement', 'label': 'D'}
1. Section 20 addresses bilateral mistake of fact.
2. Where both parties share a mistake as to a matter of fact essential to the agreement, the agreement is void.
3. A unilateral mistake of fact does not by itself void the contract under Section 22.
4. Mistake of Indian law is not a ground to avoid; mistake of foreign law is treated as mistake of fact (Section 21).
_Source: Indian Contract Act, 1872 (indiacode.nic.in), S. 20_
Related questions
Agreements in restraint of legal proceedings, in restraint of trade and in restraint of maThe term "consideration" in Section 2(d) may be furnished byUnder Section 17, fraud in a contract does NOT includeUnder Section 15, "coercion" includesAn agreement by way of wager is under Section 30Agreements the meaning of which is not certain, or capable of being made certain, are undeUnder Section 28, agreements restricting a party's right to enforce legal rights in ordinaUnder Section 27, an agreement in restraint of trade is