Page 22 - 01. Indian Contract Act, 1872

 Unilateral mistake is not void

 Cases when the contract is void if there is a unilateral mistake:
(i) where the mistake is done as regards the nature of the contract,

(ii) where the mistake is done as regards the identify of the person contracted

with
 It can avoided, if it was either due to

(i) blindness, illiteracy, or senility of a person or

(ii) a trick or fraudulent misrepresentation as to nature of document

Facts – An old illiterate man was made to sign a bill of exchange, by
means of false representation that it was guarantee
Decision – The contact was void

 Mistake as to identify of person operates if
(i) identify is for material importance to the contracts, and

(ii) mistake is known to the other person

 Following conditions need to be fulfilled, for mistake to be void

(i) The fact is material to the agreement
(ii)There is mistake of fact

(iii) Both the parties are mistake

 If mistake of Indian law is caused due to inducement by the other party be

avoided by the party who has induced to enter into the contract.
 Mutual mistake may relate to the existence, identify, quality or quality of the

subject -matter:

(i) Existence : At the time of making contract both parties believed that subject matter
is in existence, but it is actually not.

Facts
(i) A agreed to sell a cargo of corn, which was supposed to
be in transit
(ii) Corn had become fermented and sold by the master of
the ship
(iii) This was unknown to both the parties
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Decision – The agreement is void.