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When parties enters into a contract under a mutual mistake of fact the contract is_________ :
- a)Valid
- b)Voidable
- c)Void
- d)None of these
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
When parties enters into a contract under a mutual mistake of fact the...
Mistake of Fact in Contract Law
In contract law, a mistake of fact occurs when one or both parties to a contract misunderstand the essential elements of the agreement at the time it was made. Such a mistake can affect the validity of a contract.
Void Contracts
A void contract is one that is legally unenforceable from the start. A void contract can arise when the subject matter of the contract is illegal or when one of the parties lacks the capacity to enter into the agreement. In the case of a mutual mistake of fact, the contract is void if the mistake relates to a fundamental aspect of the transaction.
Mutual Mistake of Fact
A mutual mistake of fact occurs when both parties to a contract are mistaken about the same essential fact. If the mistake is material, meaning it would have a significant impact on the agreement, then the contract may be voidable or void.
Void Contracts vs. Voidable Contracts
A voidable contract is one that is valid and enforceable but may be rescinded, or canceled, by one or both parties in certain circumstances. For example, a contract may be voidable if one party was coerced into signing it or if one party was under duress.
In the case of a mutual mistake of fact, the contract is void if the mistake relates to a fundamental aspect of the transaction. As such, the contract is not enforceable by either party and is considered void ab initio, or void from the beginning.
In contract law, a mistake of fact occurs when one or both parties to a contract misunderstand the essential elements of the agreement at the time it was made. Such a mistake can affect the validity of a contract.
Void Contracts
A void contract is one that is legally unenforceable from the start. A void contract can arise when the subject matter of the contract is illegal or when one of the parties lacks the capacity to enter into the agreement. In the case of a mutual mistake of fact, the contract is void if the mistake relates to a fundamental aspect of the transaction.
Mutual Mistake of Fact
A mutual mistake of fact occurs when both parties to a contract are mistaken about the same essential fact. If the mistake is material, meaning it would have a significant impact on the agreement, then the contract may be voidable or void.
Void Contracts vs. Voidable Contracts
A voidable contract is one that is valid and enforceable but may be rescinded, or canceled, by one or both parties in certain circumstances. For example, a contract may be voidable if one party was coerced into signing it or if one party was under duress.
In the case of a mutual mistake of fact, the contract is void if the mistake relates to a fundamental aspect of the transaction. As such, the contract is not enforceable by either party and is considered void ab initio, or void from the beginning.
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When parties enters into a contract under a mutual mistake of fact the...
Here both the parties had mutual mistake of fact, so such contract is void as the mistake is bilateral mistake.hence option c is correct.
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When parties enters into a contract under a mutual mistake of fact the contract is_________ :a)Validb)Voidablec)Voidd)None of theseCorrect answer is option 'C'. Can you explain this answer?
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When parties enters into a contract under a mutual mistake of fact the contract is_________ :a)Validb)Voidablec)Voidd)None of theseCorrect answer is option 'C'. Can you explain this answer? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about When parties enters into a contract under a mutual mistake of fact the contract is_________ :a)Validb)Voidablec)Voidd)None of theseCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for When parties enters into a contract under a mutual mistake of fact the contract is_________ :a)Validb)Voidablec)Voidd)None of theseCorrect answer is option 'C'. Can you explain this answer?.
When parties enters into a contract under a mutual mistake of fact the contract is_________ :a)Validb)Voidablec)Voidd)None of theseCorrect answer is option 'C'. Can you explain this answer? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about When parties enters into a contract under a mutual mistake of fact the contract is_________ :a)Validb)Voidablec)Voidd)None of theseCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for When parties enters into a contract under a mutual mistake of fact the contract is_________ :a)Validb)Voidablec)Voidd)None of theseCorrect answer is option 'C'. Can you explain this answer?.
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