Essay On Contractual Mistakes

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Contractual Mistakes Uphold by Courts
The contracts may be having mistakes which are called the contractual mistakes and some of the mistakes can make the contract void and rescission can be option for the courts in different scenarios. The mistakes which are upheld by courts for the contracts are given below:

Mistake can be of:
i. Mistake of fact When the parties are at the mistake of material fact that will affect the contract in a way that it will make the contract impossible or difficult to complete with profit or without loss, the contract will be void. Like A is buyer and B is seller and they agree on building the houses in hilly area thinking that the price of cement bag is Rs. 360 while the actual price of cement bag is Rs. 450 because of transportation charges of hilly area so this mistake of material fact will make it impossible to build the houses at the same price of contract for B so contract is void. ii. Mistake of law When the parties are mistaken about some law the mistake is mistake of law. In case of mistaken at local law the phrase “Ignorance of law is no excuse” is the normal practice for the courts and contract will not be void. But in case of being mistaken at international law the relief is usually given and the contract will be void
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It can be by the ignorance of law. If it is the ignorance of local law then the phrase that “Ignorance of law is no excuse” and the contract will not be void. But if it is the international law then relief can be given to one party or to the both parties and contract can be void or compensation or rescission can be done according to the scenario of the situation. Now only if the parties are mistaken to material fact or change the identity of the contract to a shape that makes the contract impossible to complete, the situation will make the contract
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