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

Meera Textiles Pvt Ltd (Surat) agrees to sell to Arjun Traders "one hundred tons of oil" at Rs 90,000 per ton. The agreement does not mention what kind of oil, and Meera Textiles deals in no particular oil, so nothing else indicates the meaning. What is the legal position under the Indian Contract Act, 1872?

The agreement is void for uncertainty. Under section 29 of the Indian Contract Act, an agreement whose meaning is not certain or capable of being made certain is void. The type of oil is unspecified and nothing in the facts identifies it, so stating quantity and price does not save it.

  1. AThe agreement is valid because the quantity and price are stated
  2. BThe agreement is void for uncertainty because its meaning is not certain or capable of being made certainCorrect
  3. CThe agreement is voidable at the option of Arjun Traders
  4. DThe agreement is valid but enforceable only if registered

Explanation

Section 29 declares agreements void if their meaning is not certain or capable of being made certain. The kind of oil is not stated and nothing in the facts can fix it, so the agreement is void. Quantity and price do not cure the missing description of the subject matter.

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