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

Which statement about the illustration to Section 21 of the Indian Contract Act, 1872 is correct?

The illustration says that if A and B contract on the erroneous belief that a debt is barred by the Indian law of limitation, the contract is not voidable, because the mistake concerns a law in force in India.

  1. AA and B contract believing wrongly that a debt is barred by the Indian law of limitation, and the contract is not voidableCorrect
  2. BA and B contract believing wrongly that a debt is barred by the Indian law of limitation, and the contract is void
  3. CA and B contract on a mistaken belief about a foreign law, and the contract is voidable
  4. DA contracts under a mistake about a fact, and the contract is not voidable

Explanation

The retained illustration to Section 21 concerns an erroneous belief that a debt is barred by the Indian law of limitation. The text states the contract is not voidable. The second illustration was repealed in 1917, so no foreign-law illustration remains in the text.

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