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CS Professional · Drafting, Pleadings and Appearances · Drafting of Agreements, Deeds and Documents

Meera Textiles Pvt Ltd (Surat) agrees in writing to sell to Rohan Traders "one hundred tons of oil" for a stated price. The agreement says nothing about the kind of oil, and nothing in the parties' dealings or trade indicates it. Meera Textiles deals in several kinds of oil. What is the legal position of this agreement?

The agreement is void for uncertainty. Section 29 of the Indian Contract Act makes void any agreement whose meaning is neither certain nor capable of being made certain. Since the kind of oil is unspecified and nothing indicates it, stating quantity and price does not save it.

  1. AValid, because the quantity and price are stated
  2. BVoid for uncertainty, because the meaning is neither certain nor capable of being made certainCorrect
  3. CVoidable at the option of Rohan Traders
  4. DValid, but only if registered

Explanation

Under Section 29 of the Indian Contract Act, 1872, agreements whose meaning is not certain, or capable of being made certain, are void. The type of oil is not specified and nothing indicates it, so the meaning cannot be made certain. A stated quantity and price do not cure the uncertainty about the subject matter. It is void, not merely voidable.

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