Section 13 of Indian Contract Act, 1872 provides that the contract should be by free consent of party to the contract.
Section 14 states that consent should be free: when it’s not influenced by Undue Influence, fraud, misrepresentation and mistake and coercion.
There are two kinds of mistake Under ICA:
- Mistake of fact.
- Mistake of law.
Mistake of fact dealt under Section 20 and section 22 of ICA. Section 20 deals with when both parties under mistakes of fact, agreement are void.
It states that when the agreement is based on bilateral mistake, such contract is void except when mistake of fact regarding the price of the subject matter of contract.
Section 22 deals with unilateral mistake. When one of the parties to the contract under mistake of fact as to subject matter of contract, such agreement is not voidable.
Section 21 deals with mistake of law. It provides that a contract as to mistake Law in force in India is valid.
Mistake as to law not in force in India i.e., the foreign law, such mistake deemed to be of mistake of fact.
Illustration..
A agreed to buy horse from B, But the horse was died at the time of contract and both the parties not have knowledge about the same, the agreement is void.