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CS Executive · Jurisprudence, Interpretation and General Laws · Contract Law

Rohit, an Indian trader, enters into a contract with Anil believing, wrongly, that a particular Indian statute currently in force requires a licence for such sales. Rohit seeks to avoid the contract solely on this belief. Which statement is correct?

Rohit cannot avoid the contract on this ground. Section 21 says a contract is not voidable because of a mistake as to any law in force in India, and whether the other party shared the belief does not alter that result.

  1. AHe can avoid it because every mistake of law is treated as a mistake of fact
  2. BHe can avoid it because the mistake concerned a statute
  3. CHe cannot avoid it on this ground, since the contract is not voidable by a mistake as to a law in force in IndiaCorrect
  4. DHe can avoid it only if Anil also shared the mistake

Explanation

The statute is in force in India, so Section 21 applies and the contract is not voidable because of the mistake. Only a mistake as to a law not in force in India is treated like a mistake of fact. Whether Anil shared the belief is therefore immaterial.

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