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Mutual mistake occurs when both parties of a contract are mistaken as to the terms.

Mutual mistake occurs when both parties of a contract are mistaken as to the terms. Correct Answer True

Each believes they are contracting to something different. Courts usually try to uphold such mistakes if a reasonable interpretation of the terms can be found. However, a contract based on a mutual mistake in judgment does not cause the contract to be voidable by the party that is adversely affected.

Related Questions

Consider the following statements:
Consent obtained by mistake renders an agreement void if it is:
1. regarding value of the subject matter of the contract.
2. a mistake of fact by both the parties to the contract.
3. a mistake of law in force in India.
4. a mistake of foreign law by one party to the contract.
Which of the statements given above is/are correct?
Dhanu, Fani, Ganu and Tinu were playing cricket. One of them threw the ball on window by mistake and glass was broken. They all know who has done this and each one makes a statement about this. Select the person who has done the mistake if only one of them is making true statement. Dhanu : I didn't make the mistake and Ganu also didn't break it. Fani : I didn't make the mistake and Dhanu also didn't break it. Ganu : I didn't make the mistake and Fani also didn't break it. Tinu : I didn't make the mistake and Dhanu also didn't break it.
Following is/are essentialt(s) of valid contract as per Indian Contract Act, 1872.
(1) Parties to contract should have capacity to contract.
(2) Parties to contract should have legal mind.
(3) Parties to contract should be intelligent.
(4) Invitation to offer should be accepted.
Find correct answer:
Which of the following statements are true?
(1) Minor's contract can be ratified on attaining majority.
(2) Minor's contract cannot be ratified on attaining majority.
(3) Minor's contract can be ratified jointly by both the parties to the contract.
(4) Minor is not liable under minor's contract.
(5) Minor's contract is an enforceable contract.
A contract is said to be discharged by rescission: A. When terms of a contract are altered B. When a party makes novation of a contract C. When an aggrieved party exercises his option to avoid the contract D. When a party to a contract waives his rights under the contract E. Where none of the parties has performed its part for a long time and no other party has objected against it Choose the correct answer from the options given below:
Which of the following statements are correct?
1. In tort, the duties are imposed by law whereas in contract, duties are undertaken by the parties themselves.
2. In tort, the duty is towards the world at large but in contract, the duty is towards specific individual or individuals.
3. In tort, damages are liquidated but in contract, the damages are unliquidated.
4. In tort, a person may be liable for the wrongs committed by others also but in contract, the liability governs the parties to the contract only.
Select the correct answer using the given below:
What is the type of mistake which occurs when only one party to a contract is mistaken as to the terms or subject-matter?
In a mutual fund Capti, customers gets 100% increment in 5 years and in another mutual fund Capfirst customers get 200% in 12 years. What amount will Anamika get after 3 years if she invests total of Rs. 27000 in these two mutual funds in the ratio of 5 : 4? (Assume both mutual fund credits interest in simple rate)
Consider the following statements:
1. A contract formed by coercion and undue influence is vitiated and voidable at the option of the party whose consent is so obtained.
2. A contract formed, where both the parties are under mistaken notion about the existence of the subject matter, is void.
Which of the statements given above is/are correct?
Consider the following :
1. The perpetual struggle of Ins and Outs for political power turns the legislature into a battlefield and in this struggle the interests of the country are forgotten.
2. Parties encourage hollowness and insincerity. They divide not only the legislature but the nation into hostile camps. During national emergencies, parties can hardly transcend their petty differences and present a united front.
3. Parties often over-reach themselves and indulge in unwholesome and immoral activities live bribing the legislators
4. Parties tend to become antonomous and to regard organisations as important for their own sake. Principles are thus subordinated to success at polls and issues are not considered on merit.
Which of the above statements make a valid criticism of political parties?
Select the correct answer from the following: