Question
A agrees to buy from B a certain horse, it turns out
that the horse was dead at the time of bargaining though neither party was aware of the fact.Solution
As per Indian Contract Act, 1872- 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. Illustrations (b) A agrees to buy from B a certain horse. It turns out that the horse was dead at the time of the bargain, though neither party was aware of the fact. The agreement is void.
The black cotton soils of India are
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