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

Which statement correctly describes the effect of a mistake as to a law NOT in force in India?

A mistake as to a law not in force in India has the same effect as a mistake of fact. This is the rule in Section 21, so its consequences depend on the rules on mistake of fact, unlike a mistake about Indian law in force.

  1. AIt has the same effect as a mistake of factCorrect
  2. BIt never has any effect on the contract
  3. CIt always makes the contract voidable
  4. DIt always makes the contract illegal

Explanation

Section 21 provides that a mistake as to a law not in force in India has the same effect as a mistake of fact. So whether the contract is void or not depends on the rules for mistake of fact, such as whether both parties are mistaken about an essential fact. Options saying it always voids or never matters ignore this link.

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