Question:
Apply the given legal principles to the facts provided in the following of the question and select the most appropriate answer.
Principle : In relation to the law of contracts, in instances where both parties to an agreement are under a mistake about a matter of fact essential to the agreement, the agreement is void.
Facts : L agrees to sell to M a consignment of food grains which was supposed to be on a ship on its way from Africa to Mumbai. However, two days before the agreement was reached, the ship carrying the grains met with an accident and all the goods were lost. L’s agent had informed L about this on the day the accident happened. Is the agreement void because of a mistake as to a matter of fact ?
Apply the given legal principles to the facts provided in the following of the question and select the most appropriate answer.
Principle : In relation to the law of contracts, in instances where both parties to an agreement are under a mistake about a matter of fact essential to the agreement, the agreement is void.
Facts : L agrees to sell to M a consignment of food grains which was supposed to be on a ship on its way from Africa to Mumbai. However, two days before the agreement was reached, the ship carrying the grains met with an accident and all the goods were lost. L’s agent had informed L about this on the day the accident happened. Is the agreement void because of a mistake as to a matter of fact ?
Principle : In relation to the law of contracts, in instances where both parties to an agreement are under a mistake about a matter of fact essential to the agreement, the agreement is void.
Facts : L agrees to sell to M a consignment of food grains which was supposed to be on a ship on its way from Africa to Mumbai. However, two days before the agreement was reached, the ship carrying the grains met with an accident and all the goods were lost. L’s agent had informed L about this on the day the accident happened. Is the agreement void because of a mistake as to a matter of fact ?
Updated On: Aug 4, 2024
- Yes, since both parties committed a mistake by entering into the contract
- No, since L had dishonest intentions
- No, since L was aware that the goods were lost
- None of the above
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The Correct Option is C
Solution and Explanation
The correct option is (C) : No, since L was aware that the goods were lost.
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Top Questions on Legal Propositions and Reasonings
- Certain legal principles and specific factual situations are provided in each of the following questions. Apply the principles to the given facts and select the most appropriate answer.
LEGAL PRINCIPLE : In relation to the law of contracts, in instances where both parties to an agreement are under a mistake about a matter of fact essential to the agreement, the agreement is void.
FACTUAL SITUATION : Lakshman agrees to sell to Manu a consignment of herbal products which was supposed to be on a ship on its way from Madagascar to Mumbai. However, two days before the agreement was reached, the ship carrying the products met with an accident and all the goods were lost. Lakshman’s agent had informed Lakshman about this on the day the accident happened. Is the agreement void because of a mistake as to a matter of fact ?- AILET LLM - 2022
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LEGAL PRINCIPLE :
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2. “Misrepresentation” means and includes— the positive assertion, in a manner not warranted by the information of the person making it, of that which is not true, though he believes it to be true; any breach of duty which, without an intent to deceive, gains an advantage of the person committing it, or any one claiming under him, by misleading another to his prejudice, or to the prejudice of any one claiming under him; causing, however innocently, a party to an agreement, to make a mistake as to the substance of the thing which is the subject of the agreement.
FACTUAL SITUATION : XY Company in its prospectus stated that the company was permitted to make engines that were powered by electricity, rather than by fuel. In reality, the company did not possess such a right as this had to be approved by the Government Board. Gaining the approval for such a claim from the Board was considered a formality in such circumstances and the claim was put forward in the prospectus with this information in mind. However, the claim of the company for this right was later refused by the Board. The individuals who had purchased a stake in the business, upon reliance on the statement, brought a claim for deceit against the defendant’s business. Decide.- AILET LLM - 2022
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LEGAL PRINCIPLE :
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