What are mistake of fact and mistake of law?

Mistake is of two kinds- of fact or of law.

a) Mistake of fact: There are two principles:

i.Where both the parties to an agreement are under a mistake as to a matter of fact essential to the agreement, the agreement is void. Mistake in this case, arises as to the identity of the person or as to the subject matter of the contract. A mistake of fact may be either bilateral or unilateral. A bilateral or mutual mistake as to an existing fact essential to the agreement.

E.g. A agrees to sell to B a specific cargo of goods supposed to be on its way from England to Mumbai. It turns out that before the day of the bargain, the ship conveying the cargo is cast away and sinks. Neither party was aware of the facts. The agreement is void.

ii.Where a contract is not voidable merely because it was by one of the parties to it being under a mistake as to a matter of fact. In other words, mistake must be mutual and not unilateral. Both the parties must be labouring under such a mistake.

b) Mistake of law: This provides that a contract is not voidable because it was not caused by a mistake as to any law in force in India. This is based on the maxim Ignorantia juris non excusat.

Again,
1. A mistake of fact vitiates a contract
1. Generally, a mistake of law does not vitiate a contract.

2. Where there is mutual mistake as to an existing fact material to the agreement, the contract is void.
2. In most cases the contract is not voidable.

==============================================================================

This site is mainly dedicated for Students of Law Schools, Law Universities, Students of Higher Education in Law, Admission in Law Schools, Scholars in Law, Students of Bar-at-Law, Law admission information, College of Law, Law Notes, Law Training, Law Tuition,  Law Study Guidelines, Business Law