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Question

Where both the parties to an agreement are under a mistake as to a matter of fact essential to the agreement:

A the agreement is void Correct Answer Incorrect Answer
B the agreement is voidable at the option of the party Correct Answer Incorrect Answer
C the agreement is valid Correct Answer Incorrect Answer
D None of the above Correct Answer Incorrect Answer

Solution

 Indian Contract Act: Section 20 Agreement void where both parties are under mistake as to matter of fact: 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. Explanation: An erroneous opinion as to the value of the thing which forms the subject-matter of the agreement, is not to be deemed a mistake as to a matter of fact.

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