Section 29 The Indian Contract Act, 1872
🔹 Section 29 – The Indian Contract Act, 1872
“Agreement void where both parties are under a mistake as to a matter of fact”
When both the parties to an agreement are under a mistake as to a matter of fact essential to the agreement, the agreement is void.
📘 Explanation:
This section deals with “bilateral mistake of fact”.
If both parties are mistaken about a fact that is essential to the agreement, the contract becomes void (i.e., it has no legal effect).
This is different from a unilateral mistake where only one party is mistaken.
✅ Key Points:
The mistake must be about a fact, not about the law.
The mistake must be essential to the agreement — meaning it must relate to the subject matter or something crucial for the agreement.
If such mistake exists, there is no real consensus (meeting of minds).
🧑⚖️ Example:
Both parties agree to sell and buy a ship called “Sea Queen.”
Both parties believe the ship is afloat and seaworthy.
But unknown to both, the ship had already sunk.
Here, the agreement is void because both were mistaken about an essential fact — the existence and condition of the ship.
🔗 Related Sections:
Section 20 – Agreement void where one party is under a mistake.
Section 27 – Agreement in restraint of trade.
Section 23 – What considerations and objects are lawful.
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