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.
Choose your answer
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?
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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