Section 18 The Indian Contract Act, 1872
Certainly! Here’s a detailed explanation of Section 18 of the Indian Contract Act, 1872:
⚖️ Section 18 – Effect of mistakes as to matters of fact
Text of Section 18:
A contract is not voidable merely because it was caused by one or more mistakes, unless the mistake relates to a matter of fact essential to the agreement.
Explanation:
If a contract is entered into based on a mistake, it does not automatically become void or voidable.
The mistake must relate to a fact that is essential to the agreement.
If the mistake is about something important to the contract’s foundation, then the contract may be voidable.
Types of Mistakes:
Mistake of fact: Wrong understanding about a fact relevant to the contract.
Example: Mistaking the quality or quantity of goods sold.
Mistake of law: Generally, mistakes about law do not affect the validity of contracts.
Illustration:
If A sells goods to B, believing wrongly about the delivery date, but this mistake is not essential to the contract, the contract still stands.
But if A sells B a painting thinking it’s original, and it turns out to be a fake, this mistake as to an essential fact may make the contract voidable.
Purpose:
This section prevents contracts from being easily voided just because parties made some minor or unimportant errors in facts.
Related Sections:
Section 19 – When mistake of one party makes contract voidable.
Section 20 – Agreement void where both parties are under mistake as to matter of fact.
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