Two parties enters into a contract. They later realized that there was a mistake in their understanding of the law. This makes their contract
Verified Answer
A. Void
B. Voidable
C. Negotiable
D. None of the above
Explanation:
While a mistake of law in force in India generally does not make a contract voidable (Section 21, Indian Contract Act), if the mistake is so fundamental and mutual that it prevents a true consensus ad idem (meeting of minds) on an essential term, the agreement may be considered void ab initio (from the beginning) because there was no real agreement. This is often the case when the mistake relates to the very existence or identity of the subject matter, or a fundamental legal premise upon which the contract was based, making the contract impossible or meaningless.