Section 21

This section states that a contract is not voidable merely because it was entered into under a mistake as to the law. According to Section 21 of the Indian Contract Act, 1872, 'A contract is not voidable merely because it was entered into under a mistake as to the law.' The section emphasizes that ignorance of law is no excuse and parties to a contract are presumed to know the law. However, if the mistake as to the law has a bearing on the fact and the contract would not have been entered into but for the mistake, the contract may be voidable under Section 20 of the Act, which deals with mistakes as to facts. Judicial pronouncements have clarified that this section applies to mistakes of Indian law and not foreign law. In Ramchandra Rao v. Ramchandra Rao, the court held that a mistake of law regarding the capacity of a party to contract does not render the contract voidable.