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CS Executive · Jurisprudence, Interpretation and General Laws · Contract Law

Meera agrees to sell her white horse to Karan "for Rs 500 or Rs 1,000". Nothing indicates which price was to be paid. Which statement is correct?

The agreement is void for uncertainty. Section 29 treats an agreement as void when nothing shows which of two alternative prices was intended. Neither party acquires a right to pick the price, so the meaning cannot be made certain and no contract arises.

  1. AThe agreement is valid and Karan may choose the lower price
  2. BThe agreement is void because its meaning is uncertain as to the priceCorrect
  3. CThe agreement is valid and Meera may choose the higher price
  4. DThe agreement is voidable at the option of Meera

Explanation

This matches the position under Section 29: the price alternatives are not resolved by anything in the agreement, so the meaning is not certain or capable of being made certain. The agreement is therefore void. Neither party gets a right to choose.

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