New 👉 Ask your RBI Grade B 2025 Preparation Queries Here!!

    Register

    Question

    The nature of an agreement made under the provisions of

    Section 20 of the   Indian Contract Act would be: 
    A Valid Correct Answer Incorrect Answer
    B Invalid Correct Answer Incorrect Answer
    C Void Correct Answer Incorrect Answer
    D Voidable Correct Answer Incorrect Answer

    Solution

    S. 20. Agreement void where both parties are under mistake as to matter of fact.— Where 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.—An erroneous opinion as to the value of the thing which forms the subject-matter of the agreement, is not to be deemed a mistake as to a matter of fact.   ·         Void- null not having any force or validity. ·         Voidable- can become valid at the option of parties. ·         Valid- having force of law.

    Practice Next