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A agrees to buy from B a certain horse. It turns out that the horse was dead at the time of the…

Section 20 makes the agreement void because both parties were mistaken about an essential fact: the horse was already dead when they bargained. The Act uses this very…

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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. Which of the following provision of the Indian Contract Act, 1872 states that such an agreement is void?

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Answer and explanation

Correct answer D

Section 20 makes the agreement void because both parties were mistaken about an essential fact: the horse was already dead when they bargained. The Act uses this very situation as an illustration of mutual mistake of fact. It is not fraud or misrepresentation, since neither party knew that the horse had died.

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