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CMA Foundation · Fundamentals of Business Laws and Business Communication · Void and Voidable Agreements, No Consideration No Contract

Anil agrees to sell to Bharat 'one hundred tons of oil' but nothing in the agreement or in Anil's trade shows which kind of oil is meant. All other Section 10 conditions are satisfied. The agreement is:

The agreement is void for uncertainty. Section 29 makes agreements void when their meaning is neither certain nor capable of being made certain. Because nothing indicates the kind of oil, Section 10 does not turn it into a contract, as it is expressly declared void.

  1. AValid, because the quantity is stated
  2. BVoidable at Bharat's option
  3. CValid, and the court will choose the kind of oil
  4. DVoid, because its meaning is not certain or capable of being made certainCorrect

Explanation

Section 29 declares agreements void if their meaning is not certain or capable of being made certain. Under Section 10 an agreement expressly declared void is not a contract. Since nothing shows the kind of oil, the agreement is void, as in the Section 29 illustration.

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