BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -A mutual mistake occurs when the parties to a contract are both mistaken about the same material fact within their contract. They are at cross-purposes. There is a meeting of the minds, but the parties are mistaken. Hence the contract is voidable.

Detailed explanation-2: -Section 21 of the Indian Contract Act, 1872 states that a contract is not voidable if it has been induced by a mistake of law in force in India at the time of entering into the contract.

Detailed explanation-3: -A unilateral mistake is when only one party to the contract is under a mistake. 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.

Detailed explanation-4: -A mistake of fact as a protection applies to various crimes. If the criminal accussion can prove that he does the act due to a mistake of fact or misunderstood some fact that neutralises an element of the crime. In contrast, the mistake of law refers to a misunderstanding about whether an action is criminal or not.