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Section 21, Contract Act 1872: Effect Of Mistakes As To Law

Section 21 under Chapter II (of contracts, voidable contracts and void agreements) of the Contract Act, 1872 of India - 'Effect of mistakes as to law', is reproduced hereunder:—

“A contract is not voidable because it was caused by a mistake as to any law in force in India; but a mistake as to a law not in force in India has the same effect as a mistake of fact.

A and B make a contract grounded on the erroneous belief that a particular debt is barred by the Indian Law of Limitation; the contract is not voidable.”

Extra Notes for Readers

(1) The original words "British India" have successively been amended to "India" by the A.O. 1948 and the A.O. 1950 to read as above.
(2) 2nd paragraph of section 21 was initially inserted by the A.O. 1937 and as amended by the A.O. 1948 was repealed by the A.O. 1950.
(3) The second illustration was repealed by Act 24 of 1917, (see section 3 and Sch. II).

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