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

Meera agrees orally to sell her laptop to Rohan for Rs. 30,000. Both are adults of sound mind, consent is free, the price is paid and the object is lawful. No law requires this sale to be in writing. What is the status of the agreement?

The agreement is a valid contract. Section 10 requires free consent, competent parties, lawful consideration and a lawful object, all present here. Writing or witnesses are needed only if some other law requires them, and no such law applies to this laptop sale.

  1. AVoid, because it is not in writing
  2. BVoidable at Meera's option, because it is oral
  3. CValid contract, because Section 10 does not require writing unless another law demands itCorrect
  4. DValid only if two witnesses were present

Explanation

All Section 10 conditions are met: free consent, competent parties, lawful consideration and object. The second paragraph of Section 10 preserves only laws that require writing or witnesses, and none applies here. So the oral agreement is an enforceable contract.

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