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A agrees to buy from B an Alsatian Dog. It turns out that the Dog was dead at the time of bargain,…

Under Section 20 of the Indian Contract Act, 1872, an agreement is void when both parties are mistaken about a fact essential to it. The buyer and seller both believed that…

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A agrees to buy from B an Alsatian Dog. It turns out that the Dog was dead at the time of bargain, though neither party was aware of the fact. The agreement is _____.

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Answer and explanation

Correct answer B

Under Section 20 of the Indian Contract Act, 1872, an agreement is void when both parties are mistaken about a fact essential to it. The buyer and seller both believed that the dog was alive when they bargained. Illustration (b) applies the same rule to a horse that had already died. The facts establish a common mistake about the subject matter, with no separate ground of unlawfulness or voidability.

Option feedback

Option A

Incorrect: "voidable": Contracts caused by coercion, undue influence, fraud, or misrepresentation (Sections 19 and 19A) are voidable, whereas bilateral mistake of essential fact under Section 20 renders the agreement void ab initio.

Option B

Both parties mistakenly believed the dog was alive when they made the bargain. The mistake concerned a fact essential to the agreement, so it is void under Section 20.

Option C

Incorrect: "illegal" and "unlawful": There is no unlawful object or consideration under Section 23; the agreement fails solely due to non-existence of the subject-matter.

Option D

Incorrect: "illegal" and "unlawful": There is no unlawful object or consideration under Section 23; the agreement fails solely due to non-existence of the subject-matter.

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