In the last part we discussed fraud in detail. Now let’s continue its discussion with mistake.

Mistake may operate upon a contract in two ways. Firstly, it defeat the consent altogether that the parties are supposed to have given. Secondly, the mistake may mislead the parties as to the purpose which they contemplated. Section 21,22 and 23 are three sections of the Indian Contract Act that deal with the provisions related to mistake.

When the mistake of the parties does not defeat the consent but only mislead the parties section 20 of the Indian Contract Act applys it states that “Where both the parties to an agreement are under a mistake of fact essential to the agreement, the agreement is void.”

For example
A agrees to buy from B to buy goat. It turns out that the goat was dead at the time
of the bargain, though neither party was aware of the fact. The agreement is void.

Section 20 will come into play only when:
(1) when both the parties to an agreement are mistaken,
(2) their mistake is matter of fact, and
(3) the fact about which they are mistaken should be essential to the agreement.

Two of these points are further supplemented by sections 21 and 22. Section 21 emphasises that mistake should be of fact and not that of law. It states that “A contract is not voidable because it was caused by a mistake as to any law in force in India) but a mistake as to a law
not in force in India has the same effect as a mistake of fact.” For example A and B make a contract on the belief that a particular deal is barred by Indian law of limitation, the contract cannot be held voidable. Section 22 of the Indian Contract Act deals with the provision where the mistake is of one of the parties to contract. It states that, “A contract is not voidable merely because of the fact that it was caused by the mistake of the fact of one of the parties.”

What facts are essential
What fiacts are essential to an agreement? The answer is ,linked to the nature of promise in each case. But certain facts are essential to every agreement.
They are:
(1) The identity of the parties;
(2) the identity and nature of the subject-matter of the contract; and
(3) the nature and content of the promise itself.

Conclusion
It can easily be understood from the above discussion that any agreement in which the consent is affected by coercion, undue influence, fraud and misrepresentation are voidable at the option of the party whose consent was so caused. Consent is one of the most essential component of vaild contact if consent is not free than it may seriously affect the performance of parties to contract.

Aishwarya Says:

I have always been against Glorifying Over Work and therefore, in the year 2021, I have decided to launch this campaign “Balancing Life”and talk about this wrong practice, that we have been following since last few years. I will be talking to and interviewing around 1 lakh people in the coming 2021 and publish their interview regarding their opinion on glamourising Over Work.

If you are interested in participating in the same, do let me know.

Do follow me on Facebook, Twitter  Youtube and Instagram.

The copyright of this Article belongs exclusively to Ms. Aishwarya Sandeep. Reproduction of the same, without permission will amount to Copyright Infringement. Appropriate Legal Action under the Indian Laws will be taken.

If you would also like to contribute to my website, then do share your articles or poems at adv.aishwaryasandeep@gmail.com

We also have a Facebook Group Restarter Moms for Mothers or Women who would like to rejoin their careers post a career break or women who are enterpreneurs.

We are also running a series Inspirational Women from January 2021 to March 31,2021, featuring around 1000 stories about Indian Women, who changed the world. #choosetochallenge