Mistake 

Definition of "mistake."

The mistake does not defeat consent but only misleads the parties. Section 20 provides: Where both the parties to an agreement are under a mistake regarding facts essential to the understanding, the agreement is void. i.e. An erroneous opinion as to the value of the thing which forms the subject matter of the agreement is not to be deemed a mistake as to a matter of fact.

• A agrees to sell to B a specific cargo of goods Supposed to be on its way from England to Bombay. It turns out that, before the bargain, the ship conveying the cargo had been cast away, and the goods lost. Neither party was aware of these facts. The agreement is void.
• A, being entitled to an estate for the life of B, agrees to sell it to C.B was dead at the time of the agreement, but both parties were ignorant of the fact. The agreement is Void.

Sections 20 will proceed when:

1. when both the parties to an agreement are mistaken,
2. Secondly, their mistake is as to the matter of facts,
3. The facts about which they are mistaken is essential to the agreement.

Two of the above points are further supplemented by Sections 21 and 22.

section 21 emphasises that mistake should be of fact and not of law. 

Section 21. Effect of errors as to law: A contract is not voidable because it was caused by error 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 and B make a contract grounded on the erroneous belief that the Indian law of limitation bars a particular debt; the contract is not voidable.

Section 22. Contract caused by mistake of one party as to the matter of fact: A contract is not voidable merely because it was caused by one of the parties to it being under a mistake.

The fact would have become more essential and essential to contract if a long-distance had been involved. Ascertain points are crucial to every agreement.

• The identity of the parties.
• The identity and nature of the subject- matter of the contract; and the nature and content of the promise itself.

This effects of mistake proceeds along these lines and includes the combined effect of section 13 and 20.

This Article Does Not Intend To Hurt The Sentiments Of Any Individual Community, Sect, Or Religion Etcetera. This Article Is Based Purely On The Authors Personal Views And Opinions In The Exercise Of The Fundamental Right Guaranteed Under Article 19(1)(A) And Other Related Laws Being Force In India, For The Time Being. Further, despite all efforts made to ensure the accuracy and correctness of the information published, White Code Legal and Tax shall not be responsible for any errors caused due to human error or otherwise.