Agreement void where both parties are under mistake as to matter of fact
Section 20 of the Indian Contract Act, 1872 deals with agreement void where both parties are under mistake as to matter of fact. Where both the parties to an agreement are under a mistake as to a matter of fact essential to the agreement, the agreement is void. The Act came into force on 01 Sep 1872.
Where 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.--An erroneous opinion as to the value of the thing which forms the subject-matter of the agreement, is not to be deemed a mistake as to a matter of fact.
Illustrations
(a) A agrees to sell to B a specific cargo of goods supposed to be on its way from England to Bombay. It turns out that, before the day of the bargain, the ship conveying the cargo had been cast away and the goods lost. Neither party was aware of the these facts. The agreement is void.
(b) A agrees to buy from B a certain horse. It turns out that the horse was dead at the time of the bargain, though neither party was aware of the fact. The agreement is void.
(c) A, being entitled to an estate for the life of B, agrees to sell it to C. B was dead at the time of the agreement, but both parties were ignorant of the fact. The agreement is void.
Section 20, The Indian Contract Act, 1872 (Act 9 of 1872).
Cross-references
Extracted from the operative text of the enactments themselves. Every destination below exists in our corpus.
Referred to by 1
Related judgements & precedents
These are some judgments that construed this section, and hold precedence value. They hold authority on how to read, interpret and use this section.
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Tarsem Singh v. Sukhminder Singh
Court's Decision & Legal Precedent
Judgment of Main Case order-1.pdf 1998-02-02 DATE VERIFIED. Saghir Ahmad/Jagannadha Rao. Already in combined on contract-act 20 and 65. Isolates s.13: consent is when the parties agree upon the same thing in the same sense; mutual consent as defined in ss.13 and 14 is sine qua non; parties not ad-idem on bigha vs kanal, so there is no consent and the agreement is void under s.20. Map contract-act 13 only. Do not pad 14 (Manubhai) or remap 20/65.
On this section: Mutual mistake as to area/unit of measurement essential to a sale agreement voids the contract under s.20; unilateral mistake is outside the section (Tarsem Singh).
The holding above is the ratio decidendi as extracted from the judgment by eCourts India, reproduced unaltered — it is a rendering of the court's reasoning, not a substitute for its words. Read the order itself before relying on it.
Judgments citing this section
These may be obiter dicta or a precedent, for you to study. These are the judgments where this section is quoted.
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… We have considered the rival submissions made on both sides and have perused the record. Before proceeding further it is apposite to notice relevant statutory provisions, namely, Sections 20 and Section 73 of the Indian Contract Act, 1872 (hereinafter, referred to as the "Act"), which read as under:- "Section 20. Agreement void where both parties are under mistake as to matter of fact- Where both the parties to an agreement are under a mistake as to a matter of fact essential to the agreement the …
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… We have considered the rival submissions made on both sides and have perused the record. Before proceeding further it is apposite to notice relevant statutory provisions, namely, Sections 20 and Section 73 of the Indian Contract Act, 1872 (hereinafter, referred to as the "Act"), which read as under:- "Section 20. Agreement void where both parties are under mistake as to matter of fact- Where both the parties to an agreement are under a mistake as to a matter of fact essential to the agreement the …
Questions about Section 20
What have the courts held on Section 20 of the Indian Contract Act?
Tarsem Singh v. Sukhminder Singh (02 Feb 1998) is the leading judgment on this section among those set out below: Mutual mistake as to area/unit of measurement essential to a sale agreement voids the contract under s.20; unilateral mistake is outside the section (Tarsem Singh).
How do I find court cases under Section 20 of the Indian Contract Act?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Contract Act 20, section 20 Contract Act, section 20 of the Indian Contract Act. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome. 1 reported judgment on this section is set out on this page, beginning with Tarsem Singh v. Sukhminder Singh (02 Feb 1998).
What should I read with Section 20 of the Indian Contract Act, and has it changed?
1 other provision in this corpus refers back to it.
When did Section 20 of the Indian Contract Act come into force?
Section 20 of the Indian Contract Act, cited as Contract Act 20, came into force on 01 Sep 1872, having been enacted on 25 Apr 1872. It is in force as at the date shown on this page.
Other sections of this Act
- 73. Compensation for loss or damage caused by breach of contract1822 words
- 23. What considerations and objects are lawful, and what not596 words
- 74. Compensation for breach of contract where penalty stipulated for577 words
- 28. Agreements in restraint of legal proceeding void512 words
- 25. Agreement without consideration, void, unless it is in writing and registered, or is a promise to compensate for something done, or is a promise to pay a debt barred by limitation law423 words
- 16. "Undue influence" defined397 words
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 15 Oct 2026. This page is not a substitute for legal advice.