Multiple choice

A agrees to sell to B a specific cargo of goods supposed to be on its way from London to Mumbai. Before the day of bargain, the ship has been cast away and the goods were lost. Neither party was aware of these facts. The agreement is

  1. void

  2. voidable

  3. enforceable

  4. unenforceable

  5. None of these
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A Correct answer
Explanation

Where both the parties to an agreement are under a mistake as a matter of fact, the agreement is void in such a case. As in the above case, both the parties were not aware of the facts that the ship has cast its way. Thus, the agreement is void under Section 20 of the Indian Contract Act.

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