CSEET · Business Laws and Management · Elements of Law of Contracts
Under the Indian Contract Act, 1872, what is the effect on a contract of a mistake as to any law in force in India?
A contract is not voidable merely because it was caused by a mistake as to any law in force in India. Section 21 treats such a mistake as no ground for avoiding the contract, so the parties remain bound despite their wrong belief about Indian law.
- AThe contract is not voidable because of that mistakeCorrect
- BThe contract is void from the beginning
- CThe contract is voidable at the option of the mistaken party
- DThe contract is unenforceable until the law is clarified
Explanation
Section 21 says a contract is not voidable because it was caused by a mistake as to any law in force in India. Ignorance or wrong belief about Indian law does not give a right to avoid the contract. The options making it void or voidable contradict this rule.
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