Any agreement by which a party is totally prevented from asserting its rights under or in respect of a contract by the usual legal proceedings before the ordinary courts, or which limits the period within which it can thus assert its rights, is therefore unregated. The section states that if two people enter into an agreement, if certain future events are uncertain, the first party pays the predetermined amount to the second person, and if the future event does not occur, the second person pays the predetermined amount to the first person. 5. Factual error (§20): „If both parties to an agreement have an error in a fact essential to the agreement, the agreement is null and void.” A party cannot be allowed to obtain any relief if it has done a particular act in ignorance of the law. A mistake can be a bilateral mistake if both parties to an agreement are wrong in reality. The error must relate to a fact that is essential to the agreement. The different types of agreements that the ICA expressly declares cancelled can be understood as follows: A agrees to sell to B the wood located in its Gout-Godown de Meerut. He didn`t know that the wood was already destroyed by fire. In accordance with the provisions of S.20, the contract is null and void, i.e.
it is an error as to the existence of an object of the contract. In kores Mfg Co Ltd v. Kulok Mfg Ltd, the two employees of the sugar factory had agreed that neither of them would employ a person who had worked in the other person`s factory for the past five years in order to protect trade secrets and other confidential information. The court had annulled this agreement, since the ban applied to all workers, regardless of their skills and positions.