-
Engineering and Architecture
Exams
Colleges
Predictors
Resources
-
Computer Application and IT
Quick Links
Colleges
-
Pharmacy
Colleges
Resources
-
Hospitality and Tourism
Colleges
Resources
Diploma Colleges
-
Competition
Other Exams
Resources
-
School
Exams
Top Schools
Products & Resources
-
Study Abroad
Top Countries
Student Visas
-
Arts, Commerce & Sciences
Exams
Colleges
Upcoming Events
Resources
-
Management and Business Administration
Colleges & Courses
Predictors
-
Learn
Online Courses
Engineering Preparation
Medical Preparation
-
Online Courses and Certifications
Top Streams
Specializations
- Digital Marketing Certification Courses
- Cyber Security Certification Courses
- Artificial Intelligence Certification Courses
- Business Analytics Certification Courses
- Data Science Certification Courses
- Cloud Computing Certification Courses
- Machine Learning Certification Courses
- View All Certification Courses
Resources
-
Medicine and Allied Sciences
Colleges
Predictors
Resources
-
Law
Resources
Colleges
-
Animation and Design
Predictors & Articles
Colleges
Resources
-
Media, Mass Communication and Journalism
Colleges
Resources
-
Finance & Accounts
Top Courses & Careers
Colleges
Get Answers to all your Questions
Read the given passage very carefully and answer the questions.
Mistakes may operate upon a contract in two ways. It may, firstly, defeat the consent altogether that the parties are supposed to have given; that is to say, the consent is unreal. Secondly, the mistake may mislead the parties about the purpose they contemplated. Where both parties are under a mistake as to a matter of fact essential to the agreement, the agreement is void. However, an erroneous opinion as to the value of the things which form the subject –matter of the agreement is not deemed a mistake as a matter of fact. An agreement upon the same thing in the same sense is known as true consent or consensus ad idem, and it is the root of every contract. Two or more people are told to consent when they agree upon the same thing in the same sense.
A contract is said to be void because of a mistake when:
• Both the parties to an agreement are mistaken,
• Their mistake is, as a matter of fact, and
• The fact about which they are mistaken is essential to the agreement.
A contract is not void because it was caused by a mistake as to any law in force in India, but a mistake as to a law not in force in India has the same effect as a mistake of fact.A mistake as to identity occurs when one of the parties represents himself to be some person other than he really is. There can be a mistake of identity only when a person bearing a particular identity exists within the plaintiff's knowledge, and the plaintiff intends to deal with him only. If the name the accused assumes is fictitious, there will be no mistake of identity.
Question: A person sells a horse to another person, believing it to be his. However, the horse belongs to a third person, and both parties were unaware of this. What is the status of this contract?
The contract is void because both parties were mistaken about an essential fact of the agreement.
The contract is valid because the buyer now owns the horse.
The contract is void because the seller did not have the right to sell the horse.
The contract is valid because both parties agreed on the sale.
Answers (1)
The contract is void because both parties were mistaken about an essential fact of the agreement. When the subject matter of the contract is compromised or mistaken the contract doesn't exist and under the context of the mistake of both parties, the contract is void.
