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 unaware of the recent death of his old friend B, agrees to purchase B's vintage car from B's brother, C. Both A and C were unaware of B's death at the time of the agreement. What is the status of this contract?
The agreement is valid as it was made in good faith.
The agreement is not void because B's presence wasn't a necessary condition.
The agreement is void due to a mutual mistake of fact essential to the contract.
The contract remains valid as the car exists, despite B's death.
The agreement is void due to a mutual mistake of fact essential to the contract. As clearly stated in maxim" ignoratia facti excusat ignoratia juris non excusat" here both the parties are under the mistake of fact as they were unaware of the death. This agreement is void.