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MISTAKE OF FACT and MISTAKE OF LAW
MISTAKE OF FACT and MISTAKE OF LAW
One important factor of a valid contract is free consent. Both the parties
involved in the contract must enter the contract willingly and under no
pressure. There are factors which impair the free consent of either party. Once
such factor is “mistake”, which includes a mistake of law and mistake of fact.
Let us take a more detailed look into it.
Free Consent
i. A Mistake of Law
The Contract Act says that no party shall be allowed to claim any relief on the
grounds of ignorance of Indian law. This will also include a wrong
interpretation of any legal provisions.
Mistake of Fact
Then there is the other type of mistake, a mistake of fact. This is when both
the parties misunderstand each other leaving them at a crossroads. Such a
mistake can be because of an error in understanding, or ignorance or
omission etc. But a mistake is never intentional, it is an innocent overlooking.
These mistakes can either be unilateral or bilateral.
Bilateral Mistake
Example: A agrees to sell to B his buffalo. But at the time of the agreement,
the buffalo had already died. Neither A nor B was aware of this. And so
there is no contract at all, i.e. the contract is void due to a mistake of fact
Unilateral Mistake