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    Question

    Where both the parties to an agreement are under a

    mistake as to a matter of fact essential to the agreement:
    A the agreement is void Correct Answer Incorrect Answer
    B the agreement is voidable at the option of the party Correct Answer Incorrect Answer
    C the agreement is valid Correct Answer Incorrect Answer
    D None of the above Correct Answer Incorrect Answer

    Solution

     Indian Contract Act: Section 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.

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