Non Disclosure Agreement- 6

Disclosing party and enclosing party have indicated an interest in exploring a potential business relationship relating to manufacturing of automobiles. 

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Q: Elaborate section 22 of Indian Contract Act ?

Ans: Section 22 of Indian Contract Act mentions about the mistake of fact.  Contract caused by mistake of one party as to matter of fact.—A contract is not voidable merely because it was caused by one of the parties to it being under a mistake as to a matter of fact. Then there is the other type of mistake, a mistake of fact. This happens when both the parties miscomprehend each other leaving them at a crossroads. Such a mistake can be because of an error in understanding, or ignorance or omission etc. Here a mistake is never intentional but it is an innocent overlooking. These mistakes can either be unilateral or bilateral. Bilateral Mistake:  When both parties of a contract have committed  a mistake of fact which is crucial to the agreement, such a mistake is what we call a bilateral mistake. Here both the parties have not consented to the same thing in the same sense, which is the definition of consent. Since there is an absence of consent altogether the agreement is...
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Q: Elaborate section 21 of Indian Contract Act ?

Ans :  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 India; but a mistake as to a law not in force in India and has the same effect as a mistake of fact.    Illustration:  Shyam entered into an agreement of non disclosure agreement with Ram having the belief that he would disclose the confidential clause of non disclosure agreement later and would give the payment for the disclosure and Shyam thought that it was lawful , so due to mistake of law by Shyam, the agreement will not be void and the Shyam will be bound to maintain the confidentiality clause of the agreement.   However, ignorance of a foreign law is not given a similar treatment. Ignorance of the foreign law is rendered some leeway, the parties are not expected to know foreign legal provisions as well as their meaning. So a mistake of foreign law is in fact treated as a mistake of fact under the Indian Contract Act.
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Q: What is non disclosure agreement ?

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