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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