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Ref No: 1597

Introduction

The proposition is fully agreed, reasons and arguments are as under:

Contract Law:It is a very clear view that the mistake or mistaken view turns the whole agreement or contract toward the position of void (not enforceable by law) or voidable (later on can be void) According to the contract laws the mistaken belief is known as a mistake and any agreement executed under the belief of a mistake is either void or voidable. Actually, in contract law, the word mistake means an erroneous belief at the time of contracting that some facts are true.

The mistake has two versions

1. Mistake of law
2. Mistake of facts

Whenever the parties enter into a contract without knowing the law of the country and any mistake accrues, the contract may be affected by such mistake, but it is not void.[1]

According to Lambert v. California, 355 U.S. 225 (1957), The ignorance of law cannot be termed as an excuse, therefore if some mistake of low has led any party to enter a contract, then the contract is not valid. For example, if John and William have entered into a contract grounded in the mistaken belief that a particular debt is barred by the provisions of Limitation Act of India, the contract is not valid and void or voidable. [2]

But where both parties of an agreement or contract execute the contract under a mistake related to matters of facts essential to the agreement[3], the agreement is absolutely void such cases are Magee v. Pennine Insurance [1969] 2 Q.B. 507 (C.A.) and Ingram v. Little [1961] I Q.B. 31 (C.A.)

According to which an erroneous opinion in respect of the value of the article which is the subject matter of the contract is not to be deemed a mistake of matter of fact

Example: A sells a cow to B by the under the mistaken belief that the cow is infertile, for a consideration of $90 only. But actually, the cow is pregnant and is valued $1500. The contract is void.

But a lady finds a stone and sells it for $30 under the mistaken view that it was Topaz. Actually, the stone is an unpolished raw diamond and has a value t $10000. This contract is neither void nor voidable but is valid because there is no mistake as neither party had knowledge that what was the stone in actual.

Reasons of views according to Common Law

The provisions of the common law have explained three different positions of a mistake which could occur in a contract. They are

1. The common mistake.
2. The unilateral mistake and

• The mutual mistake. [4]

The common mistake

The common mistake is that when all the parties to a contract are having the same common mistaken belief bout the facts……………………………..