Section 19 The Indian Contract Act, 1872
๐ Section 19 โ The Indian Contract Act, 1872
๐น Section 19: Agreements void where both parties are under mistake as to matter of fact
๐งพ Bare Act Text:
When both the parties to an agreement are under a mistake as to a matter of fact essential to the agreement, the agreement is void.
โ Explanation in Simple Terms:
If both parties to a contract make a mistake about a fundamental fact that is essential to the agreement, then the contract is void (i.e., it has no legal effect).
The mistake must be about a fact (not opinion or law) and must be essential to the contract.
๐งฉ Key Points:
Mutual Mistake of Fact: Both parties are mistaken about the same important fact.
Essential Fact: The fact must be so important that the contract is based on it.
Effect: Such an agreement is void from the beginning and cannot be enforced.
๐งโโ๏ธ Example:
A agrees to sell B a horse, believing the horse is alive.
B also believes the horse is alive.
Unknown to both, the horse had died before the contract.
Since both are mistaken about the existence of the horse (an essential fact), the agreement is void.
๐ Purpose:
To protect parties from being bound by agreements based on a fundamental misunderstanding that goes to the root of the contract.
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