In this presentaion concept of negotiable instrument, types of negotiable instrument, holder and holder in due course, endorsement , how endorsement is done, kinds of endorsement insturment obtain by unlawful means and dishonor is included.
What Is Contract?, Formation of Indian Contract Act, Agreement,Offer or Proposal, TYPES OF OFFER, Acceptance, Capacity, Minors, Unsound Mind, Consideration, Consent, Legal Object, Void Agreement, Discharge of Contract, Remedies for breach of contracts, Contingent Contract, Contract of Indemnity, Essential elements of a contract of indemnity , RIGHTS OF INDEMNITY HOLDER, Contract of Guarantee, Essential elements of a contract of Guarantee, CONTRACT OF BAILMENT, Essential elements of a contract of Bailment, MODES OF DELIVERY
In this presentaion concept of negotiable instrument, types of negotiable instrument, holder and holder in due course, endorsement , how endorsement is done, kinds of endorsement insturment obtain by unlawful means and dishonor is included.
What Is Contract?, Formation of Indian Contract Act, Agreement,Offer or Proposal, TYPES OF OFFER, Acceptance, Capacity, Minors, Unsound Mind, Consideration, Consent, Legal Object, Void Agreement, Discharge of Contract, Remedies for breach of contracts, Contingent Contract, Contract of Indemnity, Essential elements of a contract of indemnity , RIGHTS OF INDEMNITY HOLDER, Contract of Guarantee, Essential elements of a contract of Guarantee, CONTRACT OF BAILMENT, Essential elements of a contract of Bailment, MODES OF DELIVERY
A contract is a voluntary arrangement between two or more parties that is enforceable by law as a binding legal agreement. Contract is a branch of the law of obligations in jurisdictions of the civil law tradition. Contract law concerns the rights and duties that arise from agreements.
A contract arises when the parties agree that there is an agreement. Formation of a contract generally requires an offer, acceptance, consideration, and a mutual intent to be bound. Each party to a contract must have capacity to enter the agreement. Minors, intoxicated persons, and those under a mental affliction may have insufficient capacity to enter a contract. Some types of contracts may require formalities, such as a memorialization in writing.
Contracts may be bilateral or unilateral. A bilateral contract is an agreement in which each of the parties to the contract makes a promise or set of promises to each other. For example, in a contract for the sale of a home, the buyer promises to pay the seller $200,000 in exchange for the seller's promise to deliver title to the property. These common contracts take place in the daily flow of commerce transactions, and in cases with sophisticated or expensive precedent requirements, which are requirements that must be met for the contract to be fulfilled.
In this presentation, we will discuss the aspects of contracts and agreement. The concept of offers, acceptances, considerations. We will also talk about contractual capacity, mental incompetence, minor agreements and essential elements of coercion, undue influences, fraudulence, misrepresentations, public policies and contingent agreements.
To know more about Welingkar School’s Distance Learning Program and courses offered, visit: http://www.welingkaronline.org/distance-learning/online-mba.html
Agreement expressly declared as void - meaning of void agreement , agreements declared void under provisions of law and agreements declared void under Indian Contract Act.
A contract is a voluntary arrangement between two or more parties that is enforceable by law as a binding legal agreement. Contract is a branch of the law of obligations in jurisdictions of the civil law tradition. Contract law concerns the rights and duties that arise from agreements.
A contract arises when the parties agree that there is an agreement. Formation of a contract generally requires an offer, acceptance, consideration, and a mutual intent to be bound. Each party to a contract must have capacity to enter the agreement. Minors, intoxicated persons, and those under a mental affliction may have insufficient capacity to enter a contract. Some types of contracts may require formalities, such as a memorialization in writing.
Contracts may be bilateral or unilateral. A bilateral contract is an agreement in which each of the parties to the contract makes a promise or set of promises to each other. For example, in a contract for the sale of a home, the buyer promises to pay the seller $200,000 in exchange for the seller's promise to deliver title to the property. These common contracts take place in the daily flow of commerce transactions, and in cases with sophisticated or expensive precedent requirements, which are requirements that must be met for the contract to be fulfilled.
In this presentation, we will discuss the aspects of contracts and agreement. The concept of offers, acceptances, considerations. We will also talk about contractual capacity, mental incompetence, minor agreements and essential elements of coercion, undue influences, fraudulence, misrepresentations, public policies and contingent agreements.
To know more about Welingkar School’s Distance Learning Program and courses offered, visit: http://www.welingkaronline.org/distance-learning/online-mba.html
Agreement expressly declared as void - meaning of void agreement , agreements declared void under provisions of law and agreements declared void under Indian Contract Act.
These slides contain information regarding the Meaning, Essentials, Parties and Liabilities of the parties to Negotiable Instruments under the Negotiable Instruments Act,1881.
Features of a Negotiable Instrument
Elements of Negotiability
Presumptions as to negotiable instruments
Promissory Note
Bill of Exchange
Cheque
Holder and Holder in due course
Negotiation, Indorsement and Assignment
Dishonour of negotiable instrument
Liability of Banker
Negotiable Instruments Act 1881
Significance of negotiable instruments
Features of negotiable instruments
Cheque Meaning
Types of Cheque
MICR – Meaning
Crossing
Crossing of Cheque
Holder in due course
Payment in due course
Endorsement
Paying Banker
Dishonour of Cheque
Statutory protection to a paying Banker
Material Alteration
Statutory protection in case of a Materially altered Cheque
Collecting Banker
Duties and Liabilities of Collecting Banker
Protection of Collection Banker
In 2020, the Ministry of Home Affairs established a committee led by Prof. (Dr.) Ranbir Singh, former Vice Chancellor of National Law University (NLU), Delhi. This committee was tasked with reviewing the three codes of criminal law. The primary objective of the committee was to propose comprehensive reforms to the country’s criminal laws in a manner that is both principled and effective.
The committee’s focus was on ensuring the safety and security of individuals, communities, and the nation as a whole. Throughout its deliberations, the committee aimed to uphold constitutional values such as justice, dignity, and the intrinsic value of each individual. Their goal was to recommend amendments to the criminal laws that align with these values and priorities.
Subsequently, in February, the committee successfully submitted its recommendations regarding amendments to the criminal law. These recommendations are intended to serve as a foundation for enhancing the current legal framework, promoting safety and security, and upholding the constitutional principles of justice, dignity, and the inherent worth of every individual.
WINDING UP of COMPANY, Modes of DissolutionKHURRAMWALI
Winding up, also known as liquidation, refers to the legal and financial process of dissolving a company. It involves ceasing operations, selling assets, settling debts, and ultimately removing the company from the official business registry.
Here's a breakdown of the key aspects of winding up:
Reasons for Winding Up:
Insolvency: This is the most common reason, where the company cannot pay its debts. Creditors may initiate a compulsory winding up to recover their dues.
Voluntary Closure: The owners may decide to close the company due to reasons like reaching business goals, facing losses, or merging with another company.
Deadlock: If shareholders or directors cannot agree on how to run the company, a court may order a winding up.
Types of Winding Up:
Voluntary Winding Up: This is initiated by the company's shareholders through a resolution passed by a majority vote. There are two main types:
Members' Voluntary Winding Up: The company is solvent (has enough assets to pay off its debts) and shareholders will receive any remaining assets after debts are settled.
Creditors' Voluntary Winding Up: The company is insolvent and creditors will be prioritized in receiving payment from the sale of assets.
Compulsory Winding Up: This is initiated by a court order, typically at the request of creditors, government agencies, or even by the company itself if it's insolvent.
Process of Winding Up:
Appointment of Liquidator: A qualified professional is appointed to oversee the winding-up process. They are responsible for selling assets, paying off debts, and distributing any remaining funds.
Cease Trading: The company stops its regular business operations.
Notification of Creditors: Creditors are informed about the winding up and invited to submit their claims.
Sale of Assets: The company's assets are sold to generate cash to pay off creditors.
Payment of Debts: Creditors are paid according to a set order of priority, with secured creditors receiving payment before unsecured creditors.
Distribution to Shareholders: If there are any remaining funds after all debts are settled, they are distributed to shareholders according to their ownership stake.
Dissolution: Once all claims are settled and distributions made, the company is officially dissolved and removed from the business register.
Impact of Winding Up:
Employees: Employees will likely lose their jobs during the winding-up process.
Creditors: Creditors may not recover their debts in full, especially if the company is insolvent.
Shareholders: Shareholders may not receive any payout if the company's debts exceed its assets.
Winding up is a complex legal and financial process that can have significant consequences for all parties involved. It's important to seek professional legal and financial advice when considering winding up a company.
How to Obtain Permanent Residency in the NetherlandsBridgeWest.eu
You can rely on our assistance if you are ready to apply for permanent residency. Find out more at: https://immigration-netherlands.com/obtain-a-permanent-residence-permit-in-the-netherlands/.
A "File Trademark" is a legal term referring to the registration of a unique symbol, logo, or name used to identify and distinguish products or services. This process provides legal protection, granting exclusive rights to the trademark owner, and helps prevent unauthorized use by competitors.
Visit Now: https://www.tumblr.com/trademark-quick/751620857551634432/ensure-legal-protection-file-your-trademark-with?source=share
Military Commissions details LtCol Thomas Jasper as Detailed Defense CounselThomas (Tom) Jasper
Military Commissions Trial Judiciary, Guantanamo Bay, Cuba. Notice of the Chief Defense Counsel's detailing of LtCol Thomas F. Jasper, Jr. USMC, as Detailed Defense Counsel for Abd Al Hadi Al-Iraqi on 6 August 2014 in the case of United States v. Hadi al Iraqi (10026)
ALL EYES ON RAFAH BUT WHY Explain more.pdf46adnanshahzad
All eyes on Rafah: But why?. The Rafah border crossing, a crucial point between Egypt and the Gaza Strip, often finds itself at the center of global attention. As we explore the significance of Rafah, we’ll uncover why all eyes are on Rafah and the complexities surrounding this pivotal region.
INTRODUCTION
What makes Rafah so significant that it captures global attention? The phrase ‘All eyes are on Rafah’ resonates not just with those in the region but with people worldwide who recognize its strategic, humanitarian, and political importance. In this guide, we will delve into the factors that make Rafah a focal point for international interest, examining its historical context, humanitarian challenges, and political dimensions.
Responsibilities of the office bearers while registering multi-state cooperat...Finlaw Consultancy Pvt Ltd
Introduction-
The process of register multi-state cooperative society in India is governed by the Multi-State Co-operative Societies Act, 2002. This process requires the office bearers to undertake several crucial responsibilities to ensure compliance with legal and regulatory frameworks. The key office bearers typically include the President, Secretary, and Treasurer, along with other elected members of the managing committee. Their responsibilities encompass administrative, legal, and financial duties essential for the successful registration and operation of the society.
Car Accident Injury Do I Have a Case....Knowyourright
Every year, thousands of Minnesotans are injured in car accidents. These injuries can be severe – even life-changing. Under Minnesota law, you can pursue compensation through a personal injury lawsuit.
NATURE, ORIGIN AND DEVELOPMENT OF INTERNATIONAL LAW.pptxanvithaav
These slides helps the student of international law to understand what is the nature of international law? and how international law was originated and developed?.
The slides was well structured along with the highlighted points for better understanding .
1. Papers - Business Law
Paper 1
Question1:Define promissorynote andbill of exchange ?Highlightthe essentialsof eachone anddraw
comparisonbetweenthese twonegotiable instrument.( 2+2+2+2+2=10)
Question2:What are the essentialsof contractof sales,defineunpaidseller,highlightshisrightsand
lien?(4+2+2+2=10)
Question3:What do you understandbyfree consentinacontract ? Elaborate itseach aspect.
SolutionPaper1
Answer1:
1. A promissorynote isaninstrument inwriting( notbeingacurrencynote or banknote) containingan
unconditional undertaking,signedbythe maker,topaya certain sumof moneyonlyto or to the order
of,a certain person,orto the bearerof the instrument.Section4
2. A bill of exchangeisan instrumentin writing containing an unconditionalorder,signed by themaker,
directing a certain person to pay a certain sumof money only to,or to the orderof a certain person or to
the bearerof theinstrument. A bill of exchange,therefore,isawrittenacknowledgementof the debt,
writtenbythe creditor and acceptedbythe debtor.There are usuallythree partiestoabill of exchange
drawer,acceptoror drawee and payee.Drawerhimself maybe the payee.
3. EssentialsOf PromissoryNote
a. It mustbe inwriting:
A mere verbal promise topayisnot a promissorynote.The methodof writing( eitherinkorpencil or
printing,etc.) isunimportant,butitmustbe inany formthat cannot be alteredeasily.
b.It must certainlyan express promiseor clear understandingtopay:
There mustbe an expressundertakingtopay.A mere acknowledgementisnotenough.
c. Promise to pay must be unconditional:
A conditional undertakingdestroysthe negotiable characterof anotherwise negotiable instrument.
Therefore,the promisetopaymust notdependuponthe happeningof some outside contingencyor
event.Itmustbe payable absolutely.
2. d. It shouldbe singedby the maker
The personwhopromise topay mustsignthe instrumenteventhoughitmight have beenwritten
by the promisorhimself.
e.The maker must be certain:
The note self mustshowclearlywhoisthe personagreeingtoundertake the liabilitytopaythe
amount
f.The payee mustbe certain:
The instrumentmustpointoutwithcertaintythe persontowhomthe promise hasbeenmade.
g. The promise shouldbe topay moneyandmoneyonly:
Moneymeansthe legal tendermoneyandnotoldand rare coins
h. The amountshouldbe certain:
One of the mostimportantcharacteristicsof a promissorynote iscertainly-notonly regardingthe
personto whomor bywhompaymentisto be made butalsoregardingthe amount.
There isa promise topaycertainamountwithinterestata specifiedrate.
The amountisto be paidat an indicatedrate of exchange
j. OtherFormalities:
The other formalitiesregardingnumber,place,date,considerationetc.thoughusuallyfoundgiven
inthe promissorynotesbutare notessential inlaw
4. Essentialsof Bill of Exchange
a. It mustbe inwriting.
b. It mustbe signed bythe drawer.
c. The drawer,drwaee &payee mustbe certain.
d. The sum payable mustalsobe certain.
e. It shouldbe properlystamped.
f. It must containan expressordertopaymoneyand moneyonly.
g. Number,date , place are not essential.
3. 5. ComparisonBetweenPromissory NoteandBill of Exchange
Basis of
difference
Promissory note Bill of exchange
Numberof
parties
There are two
parties-
The
maker(debtor),&
thepayee( creditor).
There are three parties-
Drawer, drawee & payee:
Although anytwoout of
thethree may be filled by
one and thesame person.
Payment to
the maker
A promissorynote
cannot be made
payable themaker
himself.
Bill of exchange tothe
drawerand payee or
drawee and payee maybe
thesame person.
Conditional
instrument
it cannot be made
conditionally.
A bill also cannot be
drawn conditionally.
Nature of
liability
Theliability of
maker is primary &
absolute.
Theliability of a maker of
a bill of exchange is
secondaryand
conditional.
4. Maker Themaker of a
promissory note is
in a position of a
debtorwho
promises topay the
sumspecified in it.
Themaker of a bill of
exchange is in a position
of a creditorwhoorders to
paythesum specified in it.
Answer2
1.Contract of Sale. It isa contract bywhichthe ownershipof movable goodsistransferredfrom
the sellertothe buyer.The term‘contract of sale’isdefinedinSection4(1) of the Sale of Goods
Act as-
“Acontract of sale of goodsis a contract wherebythe sellertransfersor agreesto transfer the
property in goodsto the buyer for a price”
Contract of sale may be absolute or conditional
Property in goods transferredit is calledSALE
Transfer to take place in future called AGREEMENT TO SELL
Agreementto Sell becomesSale whenproperty in goods is transferred.
2. EssentialsOfContract Of Sale : Must be a transfer of propertyor an agreementto transfer it
from sellerto buyer
Transfer must take place in considerationofa moneypayment made by the buyer. This money
payment iscalled price.
Property to be transferredmust be saleable
Sellerand buyermust be differentperson
3.Unpaid Seller: THE SELLER OF GOODS IS DEEMED TO BE AN UNPAID SELLER WHENTHE WHOLE
PRICE HAS NOT BEEN PAID OR TENDERED
WHEN A BILL OF EXCHANGEOR OTHER NEGOTIABLE INSTRUMENT HAS BEEN RECEIVED AS
CONDITIONAL PAYMENTAND THE CONDITION NOT FULFILLED BY REASON OF DISHONOUR OR
OTHERWISE.
5. 4.RIGHTS OF UNPAIDSELLER:
A Lien on the goods for the price while he isin possessionofthem
In case of the insolvencyofthe buyera right of stoppingthe goodsin transit after he
has parted with possessionwiththem
A right of resale as limitedbythe salesof good act
Where the property in goods has not passedto the buyer , in additionto hisother
remedies,a right of withholdingdeliverysimilartoand coextensive withhisrights of
lienand stoppage intransit where the property has passedto the buyer
5. UNPAIDSELLER’S LIEN:
While he isin possessionofgoods he entitledtoretain the possessionofthemuntil
payment or tenderof the price in the followingcases
1. Where the goods have beensoldwithout any stipulationas to credit
2. Where the goods have beensoldto the credit but the terms of ccredit
has expired
3. Where the buyer become insolvent
The unpaid sellermayexcise hisright of liennot withstandingthat he isin possession
of the goodsas agent or bailee or the buyer
Answer3 :
1.Consent: Two or more personsare said to consent whenthey agree upon the same thing in the
same sense
2.Consentof both parties must be free.
3.Consentis said to be free whenit is not caused by
(a) coercion,as definedinsection15
(b) undue influence,asdefinedinsection16
(c) fraud, as definedinsection17
(d) misrepresentation,asdefinedinsection18
(e) mistake,subjectto the provisionsof sections20, 21 and 22.
4.Coercion: In simple words,coercionisthreatorforce usedbyone party againstanotherfor
compellinghimtoenterintoan agreement.
Section15 of IndianContractAct definescoercionasthe committingorthreateningtocommitany
act forbiddenbythe IndianPenal Code oran unlawful detainingorthreateningtodetain,any
propertyto the prejudice of anypersonwiththe intentionof inducinganypersontoenterintoan
agreement.
6. Consentobtainedatthe pointof pistol orintimidation,threatof imprisonmentandthreatto
commitsuicide withthe intentionof causingapersontoenterintoan agreementisanact of
coercion.
In simple words,coercionisthreatorforce usedbyone party againstanotherfor compellinghimto
enterintoan agreement.
Section15 of IndianContractAct definescoercionasthe committing orthreateningtocommitany
act forbiddenbythe IndianPenal Code oran unlawful detainingorthreateningtodetain,any
propertyto the prejudice of anypersonwiththe intentionof inducinganypersontoenterintoan
agreement.
Consentobtainedatthe pointof pistol orintimidation,threatof imprisonmentandthreatto
commitsuicide withthe intentionof causingapersontoenterintoan agreementisanact of
coercion
5.Undue Influence: acontract issaidto be inducedbyundue influencewhere the relations
subsistingbetweenthe partiesare suchthatone of the partiesisina positiontodominate the will
of the otherand usesthe positiontoobtainanunfairadvantage overthe other
A personisin positiontodominate the will of otherwhen: Where he holdsa real or apparent
authorityoverthe othere.g.relationshipbetweenmasterandservant,publicofficerandaccused,
income tax officerinrelationanassessee.
Where he standsin a fiduciaryrelationshiptothe other.Fiduciaryrelationmeansarelationof
mutual trustand confidence.like fatherandson,guardianandward, solicitorandclient,doctorand
patient,trustee andbeneficiary.
Where he makesa contract witha personwhose mental capacityistemporarilyorpermanently
affected byreasonof age,illnessormental orbodilydistress.
Whenconsentto an agreementiscausedbyundue influence,the agreementisacontract voidable
at the optionof the party whose consentwassocaused.Suchcontract may be set aside either
absolutelyorsubjecttorestitutionof the benefitthere underoruponsuch conditionasthe court
may deemjust.(section19 (A)).
Pardanashin Ladies-A paranashinwomenisone wholivesinseclusionhavingnocommunication
exceptfrombehindthe pardahwithany male personexceptafew privilegedrelations.
Law providesspecial protectiontothemonthe groundof theirbeingignorantsofar as the worldly
knowledge goes.A contractwiththemispresumedtohave beeninducedbyundue influence unless
the otherparty showthat it washer intelligentandvoluntaryact.
7. 6.Fraud : "Fraud" meansandincludesanyof the followingactscommittedbya party to a
contract, or withhisconnivance,orbyhisagent,withintenttodeceive anotherpartytheretoof
hisagent,or to induce himto enterintothe contract:-
the suggestion,asa fact,of that whichisnot true,byone who doesnotbelieveittobe true ;
the active concealmentof afact by one havingknowledgeorbelief of the fact ;
a promise made withoutany intentionof performingit
any otheract fittedtodeceive ;
any suchact or omissionasthe law speciallydeclarestobe fraudulent.
Mere silence astofacts likelytoaffectthe willingnessof apersontoenterintoa contract isnot
fraud,unlessthe circumstancesof the case are suchthat, regardbeinghadto them, it isthe
dutyof the personkeepingsilence tospeak,orunlesshissilence is,initself,equivalentto
speech.
1.The suggestion,asafact, of that whichisnot true,by one whodoes notbelieve ittobe true.
The leadingcase:PeekV.Gurney.
The prospectusof a companydidnotreferto the existence of adocumentdisclosingliabilities.
Thiscreatedan impressionthatthe companywasprosperous.Itwasheldthatthere was
suppression of truthandsuggestionof false statementamountingtofraud.
2. The active concealmentof afact by one havingknowledge orbelief of the fact-If aperson
concealsa fat whichismaterial tothe contract will be a case of fraud.Mere nondisclosure is
not fraud,where there isnodutyto disclose.”CaveatEmptor”or“BuyerBeware”isthe rule,but
incontracts of absolute faithmere silence aboutmaterial factswill be takenasfraud.
E.g. A,horse dealersolda mare to B.A knew that the mare hada crackedhoof,whichhe filled
up insuch a way as to defydetection.The defectwassubsequentlydiscoveredbyB.Itwas held
that the agreementcouldbe avoidedbyBas hisconsentwasobtainedbyfraud.
A promise made withoutanyintentionof performingitis fraud.
Anyotheract fittedtodeceive.E.g.Where aparty,whoby false impersonationinducesanother
to enterintoa contract withhimunderthe belief thathe issomebodyelse,commitsfraud.
Anysuch act or omissionasthe law speciallydeclarestobe fraudulent.
A party to the contract isunderno obligationtodisclose the whole truthtothe otherparty.
CaveatEmptor i.e.letthe buyerbeware isthe rule applicable tocontracts.There isno dutyto
speakinsuch casesand silence doesnotamountto fraud.
Silence istreatedasFraudin:
8. Fiduciaryrelationship
Contract of insurance
Contract of marriage
Contract of Familysettlement
Share allotmentcontracts.
Whenthe consentto an agreementiscausedbyfraud,the agreementisavoidable contractat
the optionof the partywhose consentwasso caused.
A party whose consenttoanagreementissoobtainedhastworemedies,namely:
He mayrescindthe contract or
He mayinsistthat the contract shall be performedandthathe shall be put inthe position in
whichhe wouldhave been,if the representationmade hadbeentrue.
7.Misrepresentation: The term “Misrepresentationmeansafalse representationof factmade
innocentlyornon-disclosure of amaterial factwithoutanyintentiontodeceive the other party.
Accordingto Section18 the term misrepresentationmeans:
The positive assertion,inamannernot warrantedbythe informationof the personmakingit,of
that whichisnot true,thoughhe believesittobe true.
E.g. A onthe strengthof hearsay informationpositivelyassertedtoBthat certainthirdparty is
goingto be the Director of the co. to be incorporated, boughtthe sharesonfaithof such a
statement.Thisiscase of misrepresentationbyA.(Mohanlal V Shri GangaJi CottonMillsco.)
2.Anybreach of duty,which,withoutanintentiontodeceive gainsanadvantage tothe person
committingitor anyone claiming underhim, bymisleadinganothertohisprejudiceorto the
prejudice of anyone claimingunderhim.Thisisknownas‘Constructive fraud".
3.It alsocoversthose caseswhere a statementwhenmade wastrue butsubsequentlybefore it
was actedupon,itbecame false tothe knowledge of the personmakingit.Insucha case , the
personmakingthe statementcomesunderanobligationtoinformthe otherpartyof the true
facts.
There shouldbe a representationorassertion.
Such representationmustrelate toamatterof fact whichhasbecome untrue ; and Itwas made
before the finalizationof transactionwithaview toinduce the otherpartyto enterintoa
contract.
It mustactuallyhave beenacteduponby the party.
9. It musthave beenmade eitherbythe party himself orby hisdulyauthorizedagent.
Consequencesof Misrepresentation- The aggrievedpartymayavoidthe contract,or May affirm
the contract and insistonthe misrepresentationbeingmade good.
Whenconsentisinducedbymisrepresentation&aggrievedpartyhasthe meansof discovering
the truth withordinarydiligence,the contractcannotbe setaside.
8.Mistake : Mistake may be definedasanerroneousbeliefconcerningsomething.Itmeans
that partiesintendingtodoone thinghave by intentionalerrordone somethingelse.
Mistake of IndianLaw: The contract isbindingbecause everybodyissupposedtoknow the law
of the country.”A contract isnot voidable because itwascausedbya mistake asto any lawin
force in India”(section21).
Mistake of ForeignLaw and Mistake of Private rightsof Partiesare treatedas mistake of facts.
Mistake as to subjectmatter. It fallsintosix headsnamely
1.Existence 2.Identity3.Title 4. Price 5. Quantity6.Quality
Whenboththe parties toan agreementare undera mistake asto a matter of fact, whichare
essential tothe agreement,andthis agreementshall be Void.
Thus thismistake shall be termedasbilateral mistake of facts.
It shouldbe committedbyboththe parties
It shouldbe relatedtoa matterof fact whichare essential tothe agreement.
Section22 providesthatif one party alone isundermistake of fact. Unilateral mistakesdonot
affectthe validityof contractunlesstheyconcernsome fundamental factandthe otherparty is
aware of the mistake.
1.Mistake as to identityof the personorparty: Mistake asto the identityof apersonmayalso
avoida contract. Where A intendstocontract onlywithB,but entersintoa contract withC
believinghimtobe B,the contract isvitiated.
2.Mistake as to the nature of transaction:A blindmansigninga document,readovertohim
wrongly,will notbindhim.
Case ; FosterV. Mackinnon.
A an illiterate oldman,wasmade toputhis signature ona documentwhichwasa pronote .A
thoughtthe documenttobe a will where hissignature wasrequiredasawitness.Underthis
presumptionhrsignedthe documentwhichwasinfact a pronote.SubsequentlyBendorsedthe
10. pronote to C whopaidvalue forit ingoodfaith.C suedA onthe pronote.Itwasheldthat A was
not boundbyit.