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Where there is mistake of law of India the contract is?
A contract is not voidable because it was caused by a mistake as to any law in force in 1 India; but a mistake as to a law not in force in 1 India has the same effect as a mistake of fact.
What is mistake under Indian Contract Act?
Section 14 of the Indian Contract Act states that ‘Free consent means consent not caused by coercion, undue influence, fraud, misrepresentation and mistake’. A mistake means ‘believe in those things which do not exist in reality’. Thus, the mistake is an erroneous belief.
What is mistake in contract Act?
In contract law, a mistake is an erroneous belief, at contracting, that certain facts are true. It can be argued as a defense, and if raised successfully can lead to the agreement in question being found void ab initio or voidable, or alternatively an equitable remedy may be provided by the courts.
What is an example of mutual mistake in contract law?
The sales slip notes that the carpet purchased is navy. When, upon examining the carpet in daylight, the customer discovers that it is black, not navy as he thought when he bought it, a mutual mistake would have occurred, since both the seller and buyer were in error concerning the correct color of the carpet sold.
What is common mistake in law of contract?
Common Mistake This occurs when both parties to the contract are mistaken about the same state of affairs. This state of affairs could either be a mistake of subject matter or of title. For example, if A buys a car from B while unknown to them, the car had been destroyed, it is a common mistake.
What is Section 21 of Indian contract Act?
Section 21 of Indian Contract Act 1872 : “Effect of mistakes as to law” 21. A contract is not voidable because it was caused by a mistake as to any law in force in India; but a mistake as to a law not in force in India has the same effect as a mistake of fact.
How do you correct a mistake in a contract?
This can be accomplished by, among other things, correcting the language on the original contract and having each party initial the revision; executing a rider to the agreement that identifies and corrects the mistake; or executing a new version of the contract that clearly states that it is intended to reform the …
What is a common mistake in law?
Common mistake (where the mistake is shared by both parties, is fundamental and directly affects the basic definition of what the parties are contracting for). The mistake will render the contract void if it robs it of all substance. Mutual mistake (where the parties are at cross-purposes with one another).
Is the contract valid in case of a mistake?
When consent to a contract is gained due to a bilateral mistake of fact, the contract is said to be void but when the mistake occurs due to a unilateral mistake of fact, the agreement is valid except in the cases of mistake regarding the nature of the contract or identity of the parties to the contract.
What is Section 23 of Indian Contract Act?
Section 23 of the Indian Contract Act, 1872 – What considerations and objects are lawful and what not The consideration or object of an agreement is lawful, unless- It is forbidden by law; or is of such a nature that, if permitted, it would defeat the provisions of any law; or is fraudulent; or involves or implies …
Which is a mistake under Indian Contract Act?
Mistake of Fact under Indian Contract Act 1 Mistake must be mutual that is committed by both the parties 2 Is should be related to certain Fact. 3 Facts should be necessary to contract. More
What is the mistake of law in India?
In this case, the person was not knowing the clauses of the Immigration Act 1971, for staying beyond the time limit by the leave. Here, he cannot apply for defence under the mistake of law. Mistake of Indian Law: “Ignorantia Juris non excusat” is a Latin maxim which means “Ignorance of the law is not excused”.
Why is a contract not voidable in India?
Effect of mistakes as to law—A contract is not voidable because it was caused by a mistake as to any law in force in India, but a mistake as to a law not in force in India has the same effect as a mistake of fact.
When is a unilateral mistake a mistake of law?
A unilateral mistake is when only one party to the contract is under a mistake. In such a case the contract will not be void. So the Section 22 of the Act states that just because one party was under a mistake of fact the contract will not be void or voidable. So if only one party has made a mistake of fact the contract remains a valid contract.