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.
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