Monday, 8 August 2011

What is mistake and discuss the effects of mistake on the agreement and also discuss the kinds of mistake

"Any kind of fraud regarding the facts of a thing for which contract is made or provision of law is known as mistake."

It is defined in the contract act as "When both parties to an agreement are under mistake (i) as a matter of fact, (ii) essential to the agreement. the agreement is void."

Kinds of Mistake :-

1. Mistake as to the subject matter of the government.

2. Mistake to the identity of the party.

3. Mistake as to the nature of transaction.

Example 1 :- Mr. Thakur agrees to sell a special car to Mr. Bhutt supoosed to be on its way from Japan to India. It turns out that before the day of bargain ship bringing the car destroyed and car lost. Neither of the parties was aware of these facts. The agreement is void. In under the mistake as a matter of fact essential to the agreement.

Example 2 :- Mr. Nehra has dogs black and white. He offers to dell his dog to Mr. Paul. Mr. Paul intending to purchase the white dog but no body mentions about the particular dog. It is also a void contract.

Effects on the Validity of Contract :-
When the parties to an agreement are under mistake as to a matter of fact essential to the agreement, the agreement is void.It is necessary that mistake must be mutual. It should not be a matter of law. The contract will be not vitiated if there is a mistake as to matter of law. It is also necessary that mistake should be in respect of matter essential to contract. If matter is not essential contract will not be vitiated.


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