Under the meaning of law any type of fault regarding the fact of thing for which contract is made or provision of law is known as mistake. It is necessary for the validity of contract that there must be free consent of all the contracting parties. When both the parties to the contract are at mistake, the contract is void and is not valid.
Kinds Of Mistake:
There are two kinds of mistake:
- Mistake of facts:
- Mistake of law.
MISTAKE OF FACTS
When any or both the parties to the contract are under a mistake as a matter of fact, essential to any agreement it is known as mistake of facts.
A agrees to buy B a certain horse. It turns out that the horse was dead at the time of bargaining. Neither of the parties was aware of this fact. This contract will be void.
MISTAKE OF LAW
Any type of mistake regarding the provision is a mistake of law.