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For the purposes of the Indian Contract Act, 1872, where both the parties to an agreement are under a…

Contract Act section 20 makes an agreement void where both parties are mistaken about a matter of fact essential to it. An erroneous opinion about value alone is not the…

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For the purposes of the Indian Contract Act, 1872, where both the parties to an agreement are under a mistake as to a matter of fact essential to the agreement:

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Correct answer A

Contract Act section 20 makes an agreement void where both parties are mistaken about a matter of fact essential to it. An erroneous opinion about value alone is not the statutory mistake, as the explanation states. Unilateral factual mistake and mistake of Indian law have different provisions; this is the bilateral essential-fact rule.

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