Section 21 of The Indian Contract Act, 1872 View Chapter 2

Effect of mistakes as to law.

A contract is not voidable because it was caused by a mistake as to any law in force in 1 India; but a mistake as to a law not in force in 1 India has the same effect as a mistake of fact.

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Illustration

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.

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Footnote-

1. The original words "British India" have successively been amended by the A.O. 1948 and the A.O. 1950 to read as above.

2. Paragraph 2, ins. by the A.O. 1937, and as amended by the A. O. 1948 was Rep. by the A. O. 1950.

3. The second Illustration to s. 21 rep. by Act 24 of 1917, s. 3 and the Second Schedule.