Question 1 (b)

Mistake of fact and mistake of law

6 marks

Time to write: About 12 minutes

From an older CBCS paper

Question

Question 1 (b) · 6 marks

How does a Mistake of Fact differ from a Mistake of Law ? Give examples.

Reworded from the university paper; the task is the same. The original paper belongs to the University of Delhi. See DU's question bank.

Before you write

Read off the question and its marks

12 minfor 6 marks

Read from the question

How…?Give…Two asks in one question: answer both.
differSet the differences out in a table, basis by basis, not as two separate essays.
examplesExamples are asked for: one short example with each point.

Write it in this order

Read; underline the asks; jot your points 1 min
1 Mistake of fact (sections 20 and 22) 2 marks 3 min
2 Mistake of law 2 marks 3 min
3 Difference and examples 2 marks 3 min
Check: every ask answered, key terms underlined 2 min

123

Short on time? Trim steps 1–3 evenly rather than skip one: each is capped at its own marks.

Try it first. About 12 minutes for 6 marks. Write it out, then open the solution.

Solution

Hover or tap a marked figure, like 72,000, to see how it is made and where else it appears.

Mistake. A mistake is an honest but wrong belief that leads the parties to misunderstand each other about the contract. It may concern a fact or the law.

Mistake of fact:

Bilateral: if both parties are wrong about a fact that is essential to the agreement (the existence, identity, quality, title, quantity or price of the subject matter, for instance), the agreement is void (s. 20). A dealer and a buyer agree on the sale of a particular truck which, unknown to both, was burnt out in a fire the night before: there is nothing to sell, and the agreement is void.
Unilateral: a contract is not voidable just because one party alone was mistaken about a fact (s. 22).

Mistake of law:

Of Indian law: ignorance of the law of the land is no defence, so the contract stands. A shopkeeper who agrees a price believing that no GST is payable on the item cannot later escape the bargain on that ground.
Of foreign law: treated in the same way as a mistake of fact (s. 21). So if both parties share a mistake about a foreign law and it is essential to the agreement, the agreement is void under s. 20; a mistake by one party alone does not make it voidable (s. 22).

Difference:

Basis	Mistake of fact	Mistake of law
Effect	A shared mistake about an essential fact makes the agreement void	A mistake of Indian law leaves the contract valid
Relief	Only a mistake shared by both parties about an essential fact avoids the agreement; one party's own factual error does not make the contract voidable	Ignorance of the law of the land is no excuse
Example	The burnt-out truck	The shopkeeper's GST belief

Where the 6 marks sit

#	Component	Marks
1	Mistake of fact (sections 20 and 22)	2
2	Mistake of law	2
3	Difference and examples	2
	Total	6

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