Site navigation

A agrees to buy B’s identified horse. Unknown to both parties, the horse was already dead when they…

Section 20 makes an agreement void where both parties mistake a fact essential to it. Illustration(b) specifically gives a horse already dead, unknown to both at the…

Choose your answer

A agrees to buy B’s identified horse. Unknown to both parties, the horse was already dead when they made the agreement. Under the Indian Contract Act, 1872, what is the effect?

Select one answer
Answer and explanation

Correct answer A

Section 20 makes an agreement void where both parties mistake a fact essential to it. Illustration(b) specifically gives a horse already dead, unknown to both at the bargain. This is existing mutual mistake, rather than subsequent impossibility.

Option feedback

Option A

This mutual essential mistake matches section 20 illustration(b).

Option B

Section 20 does not create a valid compensation contract.

Option C

The effect is voidness, not avoidance at one party’s election.

Option D

Mutual essential mistake does not allocate an avoidance election to B.

Practice for these exams

Related question papers

Related exam syllabi

Related questions in this topic