CAF-4 · Chapter 4 · Question 14 of 15
A contract is void on the grounds of mistake ONLY IF the mistake is about:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) A matter of fact essential to the agreement.
Explanation
Under Section 20, the mistake must be bilateral (by both parties) and must relate to a fact that is essential to the heart of the agreement.
More Free consent MCQs
- Q1What happens to a contract when the consent of a party is obtained by 'coercion'?
- Q2Under which of the following circumstances is 'undue influence' presumed to exist?
- Q3Does 'mere silence' as to facts likely to affect the willingness of a person to enter into a contract constitute fraud?
- Q4If both parties to an agreement are under a 'mistake as to a matter of fact' essential to the agreement, the agreement is:
- Q5Azam, a moneylender, advances Rs. 100,000 to a distressed farmer, Babar, and by using his influence, makes Babar sign a bond for Rs…