BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -In such a case the contract will not be void. So the Section 22 of the Act states that just because one party was under a mistake of fact the contract will not be void or voidable. So if only one party has made a mistake of fact the contract remains a valid contract.

Detailed explanation-2: -22. Contract caused by mistake of one party as to matter of fact.-A contract is not voidable merely because it was caused by one of the parties to it being under a mistake as to a matter of fact.

Detailed explanation-3: -Section 21: Effect of mistakes as to law. 21. A contract is not voidable because it was caused by a mistake as to any law in force in 1[India]; but a mistake as to a law not in force in 1[India] has the same effect as a mistake of fact.

Detailed explanation-4: -Section 20, 21 and 22 deals with the concept related to mistake. ‘Mistake’ can be defined as any action, decision or judgement that produced an unwanted and unintentional result. A Mistake is said to have occurred where parties intending to do one thing by error do something else.

Detailed explanation-5: -A mistake, misrepresentation, or fraud. Undue influence or duress. One party’s legal incapacity to enter a contract (e.g., a minor) One or more terms that are unconscionable.