Where both the parties to an agreement are under a mistake as a matter of fact essential to the agre...........

Indian Contract Act (ICA)1872 Valid and Void Contracts

Where both the parties to an agreement are under a mistake as a matter of fact essential to the agreement, the agreement is _____________.

void.

voidable.

illegal.

not affected at all.

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Explanation:

Section 20 –
20. Agreement void where both parties are under mistake as to matter of fact. Where both the parties to an agreement are under a mistake as to a matter of fact essential to the agreement, the agreement, the agreement is void. ExplanationAn erroneous opinion as to the value of the things which forms the subject-matter of the agreement, is not be deemed a mistake as to a matter of fact.