Multiple choice

Under Section 20 of the Indian Contract Act 1872 in case both the parties are under mistake as to matter of fact the contract

  1. is valid

  2. is invalid

  3. is void

  4. None of these

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

Under Section 20 of the Indian Contract Act, 1872, when both parties are under a mistake of fact regarding a fundamental fact essential to the agreement, the contract is void. This makes option C correct - a mutual mistake of fact renders the agreement invalid from the beginning.