What is Mistake under Section 19, 20 and 21 of The Indian Contract Act 1872?
Effect of absence of consent: ⇒ When there is no consent at all, the agreement is void – ab – initio’. It is not enforceable at the option of either party
Example 1:- X have two car one Maruti car and one Honda city car. Y does not know that X has two cars Y offers to buy car at Rs.50,000. Here, there is no identity of mind in respect of the subject matter. Hence there is no consent at all and the agreement is void – ab – inito.
Example 2:- An Illiterate woman signed a gift deed thinking that it was a power of attorney – no consent at all and the agreement was void – ab – inito [ Bala Devi V S. Manumdats ]
Free consent ⇒ Consent is said to be free when it is not caused by [ Section 14]
Coercion [Section 15]
Undue influence [Section 16]
Fraud [Section 17]
Misrepresentation [ Section 18]
Mistake [Section 20, 21,22]
Effect of absence of Free Consent :- If consent coercion, undue influence, fraud , Misrepresentation the contract is voidable at the option of party whose consent was not free [19, 19A]
Exception: - Where contract is not valid (void)
1. Identity of persons contract with Both parties under Ex. :- A woman, falsely misrepresenting herself to be wife of a well known Baron obtained two pearl necklaces from a firm of jewelers on the pretext of showing them to her husband before buying. She pledged them with a broker who took them in good faith. Held that there was no contract between jeweler and woman and even an innocent buyer or a broker did not get a good title. Broker must return necklaces to jeweler. Jeweler intended to deal not with her but with quite a different person, i.e., wife of a Baron.
2. as the nature of the contract Ex.:- illiterate man sign Bill of exchanges by means of false, representation that it was a mere guarantee. It was held that he was not liable for bill of exchange because never intended to sign the bill of exchange
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