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A agrees to sell to B the goods which are on their way to Chennai from Oman by a ship. But before the…

The goods had been lost with the ship before the agreement and neither party knew it, so under s.20 the mutual mistake of an essential fact makes the agreement "Void".

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A agrees to sell to B the goods which are on their way to Chennai from Oman by a ship. But before the agreement between the parties, the ship had sunk and the goods to be sold to B were lost. Neither party is aware of this happening. The agreement is:

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Correct answer A

The goods had been lost with the ship before the agreement and neither party knew it, so under s.20 the mutual mistake of an essential fact makes the agreement "Void".

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