Rectification of instruments — MCQs

All questions with answers and explanations

Read the full set here, or use the practice card above to test yourself one question at a time.

1. Rectification under Section 26 is available where a written instrument fails to express the parties' real intention due to:

   • Fraud or a mutual mistake of the parties (correct answer)
   • A unilateral mistake by only one party
   • A change of mind after signing
   • Currency fluctuation

   Explanation. Section 26 requires fraud or a MUTUAL mistake. The note says the Act does not allow rectification for a mistake made by one party alone.

2. Which of the following CANNOT be rectified under Section 26?

   • A sale agreement with a clerical error in extent
   • A company's articles of association (correct answer)
   • A promissory note
   • A lease deed

   Explanation. The main text of Section 26 expressly excludes a company's articles of association from rectification under this section.

3. Under Section 26(2), rectification is:

   • A matter of right, granted automatically
   • Discretionary, and cannot prejudice bona fide third-party rights (correct answer)
   • Only available within 30 days of signing
   • Only available to companies

   Explanation. Section 26(2) makes rectification discretionary, and it cannot be ordered where it would prejudice rights already acquired by third persons in good faith and for value.

4. Under Section 26(3), a rectified contract may then be:

   • Specifically enforced in the same suit, if prayed for (correct answer)
   • Automatically cancelled
   • Only enforced in a fresh suit
   • Registered as a new document

   Explanation. Section 26(3) allows a contract to be first rectified and then specifically enforced in the same proceeding, if properly pleaded.

5. A key distinguishing feature of rectification, compared to rescission, is that rectification:

   • Undoes the contract entirely
   • Corrects the written document while the contract itself survives (correct answer)
   • Only applies to void agreements
   • Requires court permission to even file

   Explanation. Rectification fixes the document's wording; the underlying contract survives and continues, unlike rescission which undoes the contract.

6. Rectification is NOT available to a party who:

   • Genuinely agreed to certain terms that were mistakenly recorded differently
   • Simply regrets the terms he knowingly and correctly agreed to in writing (correct answer)
   • Was defrauded about what the document said
   • Shares a genuine mutual mistake with the other party

   Explanation. Rectification is not a tool for a party who made a bad bargain knowingly — the writing must have failed to capture the real agreement, not merely turned out unwise.

7. Who may bring a suit for rectification under Section 26(1)(a)?

   • Only the party who drafted the document
   • Either party to the contract, or his representative in interest (correct answer)
   • Only a government official
   • Only the notary who registered it

   Explanation. Section 26(1)(a) allows either party or his representative in interest to institute a suit for rectification.

8. A rectification claim can also be raised:

   • Only as a completely separate, standalone suit
   • As a claim within an existing suit, or as a defence by the defendant (correct answer)
   • Only in a criminal court
   • Only after the contract's limitation period has expired

   Explanation. Section 26(1)(b) and (c) allow rectification to be claimed within an existing suit, or raised defensively by a defendant.