Section 24 The Indian Contract Act, 1872
Section 24 – The Indian Contract Act, 1872
📘 Title:
"Agreement void where both parties are under a mistake as to a matter of fact"
📜 Bare Text of Section 24:
“If both the parties to an agreement are under a mistake as to a matter of fact essential to the agreement, the agreement is void.”
✅ Explanation in Simple Terms:
When both parties involved in a contract or agreement are mistaken about an important fact that is essential to the contract,
Such a contract is void from the beginning, meaning it has no legal effect.
🔍 Key Points:
The mistake must be about a fact (not law).
The fact must be essential to the agreement — something so fundamental that the contract would not have been made had the parties known the truth.
This section applies to mutual mistakes, i.e., both parties share the same wrong belief.
🧑⚖️ Example:
Both A and B agree to sell/buy a specific painting. Both believe it is an original artwork, but in reality, it is a fake.
Since both are mistaken about this essential fact, the agreement is void under Section 24.
⚖️ Difference from Unilateral Mistake:
If only one party is mistaken, the contract is generally valid.
If both parties are mistaken about different things, the contract may still be valid.
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