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Under section 20 of the Indian Contract Act, 1872, both parties to an agreement are mistaken about a…

A mistake shared by both parties about a fact essential to the agreement makes it void under section 20. The statute does not make it merely voidable.

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Under section 20 of the Indian Contract Act, 1872, both parties to an agreement are mistaken about a fact essential to it. What is the effect on the agreement?

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Answer and explanation

Correct answer B

A mistake shared by both parties about a fact essential to the agreement makes it void under section 20. The statute does not make it merely voidable.

Option feedback

Option A

Section 20 makes an agreement void when both parties are mistaken about a fact essential to it.

Option B

Section 20 expressly makes the agreement void, meaning it is not enforceable by law.

Option C

Section 20 does not postpone the effect until discovery. The essential mutual mistake makes the agreement void.

Option D

Section 20 treats this as void. Voidability gives one or more parties an option to enforce or avoid a contract.

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