Question

As per Section $20$ of the Indian Contract Act, the contract is void on account of bilateral mistake of fact. But as per Section $22$ of the Indian Contract Act, if there is mistake of only one party, then the contract is ___________________.

• A. void
• B. valid
• C. voidable
• D. illegal

Answer 1

The correct option is B valid

The essential ingredients of Section 20 of the Indian Contract Act, 1872 are as follows:

(1) when both the parties make a mistake

(2) the mistake must be a mistake of fact

(3) the fact on which the parties are mistaken must be essential to the agreement.

But Section 22 relates to a situation where one of the parties is under a mistake of fact. The law states that in such a situation the contract will not become void ab initio and continue to be enforced like a valid contract.