Home | ARTS | Business Environment and Law | Law and Facts of Mistake Law Of Contract

Business Environment and Law-Law Of Contract (Indian Contract Act 1872)

Law and Facts of Mistake Law Of Contract

   Posted On :  07.05.2018 10:09 pm

Salmond has described these contracts as “error in Causa”. As “error in consensus” i.e. There is no ‘consensus ad idem’; because of some misunderstanding, called ‘Mistake’, parties do not agree upon the same thing in the same sense. According to Indian Contract Act, Mistake is of two types, (1) Mistake as to law and (2) Mistake as to fact.

Mistake
 
 
Salmond has described these contracts as “error in Causa”. As “error in consensus” i.e. There is no ‘consensus ad idem’; because of some misunderstanding, called ‘Mistake’, parties do not agree upon the same
thing in the same sense. According to Indian Contract Act, Mistake is of two types, (1) Mistake as to law and (2) Mistake as to fact.
 

Mistake Of Law 

(Sec. 21): “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 mistake of fact.” The reason of this rule lies in the legal maxim “ Ignorance of law is no excuse”.

Mistake Of Fact: 

(Sec 20:) “Where both the parties to an agreement are under a mistake as to a matter of fact, essential to the agreement, the agreement is void”. Essentials: (1) Mistake must be mutual; (2) Mistake must relate to a fact: (3) Fact should be essential:

 

Tags : Business Environment and Law-Law Of Contract (Indian Contract Act 1872)
Last 30 days 54 views

OTHER SUGEST TOPIC