CA Foundation Exam > CA Foundation Questions > If both the parties are under a mistake as to...
Start Learning for Free
If both the parties are under a mistake as to matter of fact essential to a contract, then contract is________:
- a)Void-ab-initio
- b)Voidable
- c)Void
- d)None of the above
Correct answer is option 'A'. Can you explain this answer?
Most Upvoted Answer
If both the parties are under a mistake as to matter of fact essential...
Where both the parties to an agreement are under a mistake as to a matter of fact essential to the agreement, the agreement, the agreement is void.
Explanation:
An erroneous opinion as to the value of the things which forms the subject-matter of the agreement, is not be deemed a mistake as to a matter of fact.
Illustrations
(a) A agrees to sell to B a specific cargo of goods supposed to be on its way from England to Bombay. It turns out that, before the day of the bargain in the ship conveying the cargo had been cast away and the goods lost. Neither party was aware of these facts. The agreement is void.
(b) A agrees to buy from B a certain horse. It turns out that the horse was dead at the time of bargain, though neither party was aware of the fact. The agreement is void.
(c) A, being entitled to an estate of the life of B, agrees to sell it to C, B was dead at the time of the agreement, but both parties were ignorant of the fact. The agreement is void.
Free Test
FREE
| Start Free Test |
Community Answer
If both the parties are under a mistake as to matter of fact essential...
Void-ab-initio
When both parties to a contract are under a mistake as to a matter of fact essential to the contract, the contract is considered void-ab-initio, which means it is void from the beginning.
Explanation:
A contract is an agreement between two or more parties which creates legally binding obligations. For a contract to be valid, certain requirements must be met, including the presence of an offer, acceptance, consideration, and intention to create legal relations. However, if one of the parties is mistaken about a fact that is essential to the contract, it may affect the validity of the contract.
For example, if A agrees to sell his car to B, but both parties are mistaken about the car's make and model, and it turns out to be a different car than what they thought, the contract will be void-ab-initio.
In such a case, the contract is considered void-ab-initio, which means that it was never legally binding, and both parties are released from their obligations under the contract. The mistake must be essential to the contract, which means that if the mistake is about a trivial matter, it will not affect the validity of the contract.
In conclusion, when both parties to a contract are under a mistake as to a matter of fact essential to the contract, the contract is considered to be void-ab-initio, which means that it was never legally binding.
When both parties to a contract are under a mistake as to a matter of fact essential to the contract, the contract is considered void-ab-initio, which means it is void from the beginning.
Explanation:
A contract is an agreement between two or more parties which creates legally binding obligations. For a contract to be valid, certain requirements must be met, including the presence of an offer, acceptance, consideration, and intention to create legal relations. However, if one of the parties is mistaken about a fact that is essential to the contract, it may affect the validity of the contract.
For example, if A agrees to sell his car to B, but both parties are mistaken about the car's make and model, and it turns out to be a different car than what they thought, the contract will be void-ab-initio.
In such a case, the contract is considered void-ab-initio, which means that it was never legally binding, and both parties are released from their obligations under the contract. The mistake must be essential to the contract, which means that if the mistake is about a trivial matter, it will not affect the validity of the contract.
In conclusion, when both parties to a contract are under a mistake as to a matter of fact essential to the contract, the contract is considered to be void-ab-initio, which means that it was never legally binding.
|
Explore Courses for CA Foundation exam
|
|
Top Courses for CA FoundationView all
If both the parties are under a mistake as to matter of fact essential to a contract, then contract is________:a)Void-ab-initiob)Voidablec)Voidd)None of the aboveCorrect answer is option 'A'. Can you explain this answer?
Question Description
If both the parties are under a mistake as to matter of fact essential to a contract, then contract is________:a)Void-ab-initiob)Voidablec)Voidd)None of the aboveCorrect answer is option 'A'. 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 If both the parties are under a mistake as to matter of fact essential to a contract, then contract is________:a)Void-ab-initiob)Voidablec)Voidd)None of the aboveCorrect answer is option 'A'. 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 If both the parties are under a mistake as to matter of fact essential to a contract, then contract is________:a)Void-ab-initiob)Voidablec)Voidd)None of the aboveCorrect answer is option 'A'. Can you explain this answer?.
If both the parties are under a mistake as to matter of fact essential to a contract, then contract is________:a)Void-ab-initiob)Voidablec)Voidd)None of the aboveCorrect answer is option 'A'. 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 If both the parties are under a mistake as to matter of fact essential to a contract, then contract is________:a)Void-ab-initiob)Voidablec)Voidd)None of the aboveCorrect answer is option 'A'. 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 If both the parties are under a mistake as to matter of fact essential to a contract, then contract is________:a)Void-ab-initiob)Voidablec)Voidd)None of the aboveCorrect answer is option 'A'. Can you explain this answer?.
Solutions for If both the parties are under a mistake as to matter of fact essential to a contract, then contract is________:a)Void-ab-initiob)Voidablec)Voidd)None of the aboveCorrect answer is option 'A'. Can you explain this answer? in English & in Hindi are available as part of our courses for CA Foundation.
Download more important topics, notes, lectures and mock test series for CA Foundation Exam by signing up for free.
Here you can find the meaning of If both the parties are under a mistake as to matter of fact essential to a contract, then contract is________:a)Void-ab-initiob)Voidablec)Voidd)None of the aboveCorrect answer is option 'A'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
If both the parties are under a mistake as to matter of fact essential to a contract, then contract is________:a)Void-ab-initiob)Voidablec)Voidd)None of the aboveCorrect answer is option 'A'. Can you explain this answer?, a detailed solution for If both the parties are under a mistake as to matter of fact essential to a contract, then contract is________:a)Void-ab-initiob)Voidablec)Voidd)None of the aboveCorrect answer is option 'A'. Can you explain this answer? has been provided alongside types of If both the parties are under a mistake as to matter of fact essential to a contract, then contract is________:a)Void-ab-initiob)Voidablec)Voidd)None of the aboveCorrect answer is option 'A'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice If both the parties are under a mistake as to matter of fact essential to a contract, then contract is________:a)Void-ab-initiob)Voidablec)Voidd)None of the aboveCorrect answer is option 'A'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
|
|
Explore Courses for CA Foundation exam
|
|
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup