Question

Under the Indian Contract Act, 1872, a mistake as to a law not in force in India has the same effect as ________.

• A. A mistake of fact.
• B. A mistake of law.
• C. An ignorance of law.
• D. An ignorance of fact.

Hint:

Remember: Mistake of Indian law does not affect the contract's validity, but a mistake of foreign law is treated as a mistake of fact.
If both parties are under a mutual mistake of foreign law, the agreement is void under Section 20.

Answer 1

The Correct Option is A

Step 1: Understanding the Question:
The question asks about the legal status and effect of a mistake concerning a law that is not in force in India (e.g., foreign laws) under the Indian Contract Act, 1872.

Step 2: Key Legal Principles and Approach:
The effect of mistakes on contracts is governed by Sections 20, 21, and 22 of the Indian Contract Act, 1872.
Section 21 specifically addresses the distinction between a mistake of Indian law and a mistake of foreign law.

Step 3: Detailed Explanation:

• Mistake of Law in Force: Under Section 21 of the Act, a contract is not voidable because it was caused by a mistake as to any law in force in India.

• This is based on the legal maxim ignorantia juris non excusat (ignorance of law is no excuse), as everyone is presumed to know the law of their own land.

• Mistake of Foreign Law: Section 21 explicitly provides an exception: "...but a mistake as to a law not in force in India has the same effect as a mistake of fact."

• Since Indian citizens cannot be expected to know the laws of other countries, foreign law is treated as a matter of "fact" in Indian courts and must be proved as such.

• Therefore, a mistake regarding a foreign law (a law not in force in India) is legally treated as a mistake of fact under Sections 20 and 22 of the Act.

• Thus, Option (A) is the correct choice.

Step 4: Final Answer:
Under Section 21, a mistake of a law not in force in India has the same effect as a mistake of fact, making Option (A) the correct answer.