Multiple choice

Where both parties to a contract of sale are under a mistake as to a matter of fact, essential to such contract, then the contract is

  1. illegal

  2. void

  3. still enforceable

  4. none of these

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

When both parties are under a mutual mistake regarding a fact essential to the contract, the contract is void ab initio under Section 20 of the Indian Contract Act, 1872. A bilateral mistake about a fundamental fact means there was no true meeting of minds.