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)
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