Multiple choice

Which of the following agreements is void?

  1. Agreements made under the unilateral mistake of fact.

  2. Agreements made under the bilateral mistake of fact.

  3. Agreements made under the influence of fraud.

  4. Contingent agreement.
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Under Section 20 of Indian Contract Act, agreements where both parties are under a mistake as to a matter of fact essential to the agreement are void. Bilateral mistake about a fundamental fact (like existence of subject matter) means no true consent was given - there's no meeting of minds. Unilateral mistake (one party mistaken) generally doesn't void a contract. Fraud/misrepresentation make contracts voidable (not void). Contingent agreements are valid.

Keep practicing — related questions