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

Type of Mistakes-Law Of Contract

   Posted On :  07.05.2018 10:13 pm

Mistake of fact can be divided into the following categories:

Type of Mistakes: 

Mistake of fact can be divided into the following categories:

Bilateral Mistakes: 


(1) Mistake as to the subject Matter: (i) Mistake regarding existence of subject matter: (ii) Mistake regarding identity of the subject matter i.e. The two parties understand different things to be the subject matter: (iii)Mistake regarding quantity of subject matter:(iv) Mistake regarding title of the subject matter: Where both the parties believe that the seller has the right to sell the goods but unknown to both, the seller has no title to the goods.(v) Mistake regarding the price of the subject matter.(vi) Mistake regarding the quality of the subject matter. (2) Mistake as to the possibility of performance of the agreement: if both the parties to the agreement believe that the agreement is capable of being performed though it is not, the agreement is void.

Unilateral Mistake: 


In the following circumstances, even unilateral mistake will make the contract voidable.

1. Mistake as to the nature of transaction: This is an exception to the rule that mistake must be mutual. When one of the parties to a contract, without any fault of his own, is made to commit a mistake as to the nature of transaction the agreement would be void.
2. Mistake as to the person contracted with: When the identity of the person is essential to the contract and a mistake is committed regarding that, the contract can be avoided.

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