CAF-4 · Chapter 6 · Question 13 of 15
A contract for the sale of a house is made. Unknown to both, the house was destroyed by fire an hour before the contract. This contract is:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Void due to bilateral mistake of fact.
Explanation
Since the subject matter of the contract (the house) did not exist at the time of the agreement, and both were unaware, the agreement is void under Section 20.
More Void agreements MCQs
- Q15A contract which ceases to be enforceable by law becomes void when it:
- Q1Every agreement in restraint of the marriage of any person, other than a __________, is void.
- Q2An agreement by which any person is restrained from exercising a lawful profession, trade or business of any kind, is to that extent:
- Q3Which of the following is a valid exception to the rule that agreements in restraint of trade are void?
- Q4An agreement to refer any future dispute to arbitration is: