Multiple choice

Directions: Read the following statements and give the correct explanation with the help of the codes given below.

Assertion (A): Agreement is void when both parties are under mistake as to the matter of law. Reason (R): Parties entering into a contract are legally obliged to know the law relating to the contract.

  1. (A) and (R) are correct and (R) is the correct reason for (A).

  2. (A) is correct, but (R) is wrong.

  3. (R) is correct, but (A) is wrong.

  4. Both (A) and (R) are wrong.
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Section 21 says that a contract is not voidable if it was caused by mistake as to law in India. However, mistake as to law outside India has the same effect as mistake of fact. Parties entering into a contract are not legally obliged to know the law relating to the contract.  

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