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Section 20 - Agreement void where both parties are under mistake as to matter of fact : Indian Contract Act 1872

 

What is the meaning of Agreement void where both parties are under mistake as to matter of fact? Section 20 of Indian Contract Act 1872

Section 20 of Indian Contract Act 1872 : "Agreement void where both parties are under mistake as to matter of fact"

20. Where both the parties to an agreement are under a mistake as to a matter of fact essential to the agreement, the agreement is void.

Explanation.-An erroneous opinion as to the value of the thing which forms the subject-matter of the agreement is not to be deemed a mistake as to a matter of fact.

Illustrations
(a) A agrees to sell to B a specific cargo of goods supposed to be on its way from England to Bombay. It turns out that, before the day of the bargain, the ship conveying the cargo had been cast away and the goods lost. Neither party was aware of the facts. The agreement is void.

(b) A agrees to buy from B a certain horse. It turns out that the horse was dead at the time of the bargain, though neither party was aware of the fact. The agreement is void.

(c) A, being entitled to an estate for the life of B, agrees to sell it to C. B was dead at the time of the agreement, but both parties were ignorant of the fact. The agreement is void.

 

INDIAN CONTRACT ACT 1872

Section 2 - Interpretation clause

CHAPTER I THE COMMUNICATION, ACCEPTANCE AND REVOCATION OF PROPOSALS

Section 3 - Communication, acceptance and revocation of proposals

Section 4 - Communication when complete

Section 5 - Revocation of proposals and acceptances

 

 

Section 6 - Revocation how made

Section 7 - Acceptance must be absolute

Section 8 - Acceptance by performing conditions, or receiving consideration

Section 9 - Promises, express and implied

CHAPTER II CONTRACTS, VOIDABLE CONTRACTS AND VOID AGREEMENTS

Section 10 - What agreements are contracts

 

 

Section 11 - Who are competent to contract

Section 12 - What is a sound mind for the purposes of contracting

Section 13 - Consent defined

Section 14 - Free consent defined

Section 15 - Coercion defined

 

 

Section 16 - Undue influence defined

Section 17 - Fraud defined

Section 18 - Misrepresentation defined

Section 19 - Voidability of agreements without free consent

Section 19A - Power to set aside contract induced by undue influence

Section 20 - Agreement void where both parties are under mistake as to matter of fact

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