Correct option is B
A contract caused by a mistake of law is not voidable. Under Section 21 of the Indian Contract Act, 1872, a contract is not voidable because it was entered into under a mistake as to a matter of law in force in India. Everyone is presumed to know the law of the land, and ignorance of the law is no excuse.
Information Booster: The principle behind this rule is that allowing parties to void contracts based on a mistake of law would undermine the certainty and enforceability of contracts. However, a mistake of foreign law is treated as a mistake of fact, and such contracts may be voidable.
Additional Knowledge:
· (a) Voidable: Contracts voidable due to a mistake typically involve mistakes of fact, not law.
· (c) Void: Contracts are void when they involve illegal activities or impossibility from the outset.
· (d) Illegal: Contracts based on illegal activities are void, but a mistake of law does not make a contract illegal.
