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CSEET · Business Laws and Management · Elements of Law of Contracts

Match the situation with its legal effect. (P) Both parties wrongly believe goods on a ship exist, though the ship sank earlier. (Q) Only the buyer is mistaken about a fact. (R) Both parties mistaken about a law in force in India. (S) Payment made twice by mistake. 1. Contract not voidable 2. Agreement void 3. Recipient must repay 4. Contract not voidable merely for the mistake

The correct matching is P-2, Q-4, R-1, S-3. A shared mistake about an essential fact makes the agreement void, a one-sided mistake of fact does not make the contract voidable, a mistake of Indian law does not make it voidable, and money paid by mistake must be repaid.

  1. AP-2, Q-4, R-1, S-3Correct
  2. BP-4, Q-2, R-1, S-3
  3. CP-2, Q-1, R-3, S-4
  4. DP-1, Q-4, R-2, S-3

Explanation

P is a bilateral mistake on an essential fact, so the agreement is void. Q is a unilateral mistake of fact, so the contract is not voidable merely for it. R is a mistake as to Indian law in force, so the contract is not voidable. S involves money paid by mistake, which must be repaid.

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