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

Neha agrees to sell Omar "one hundred tons of oil" with nothing to show what kind of oil is meant, and Neha deals in several kinds of oil. Omar promises Rs 3 lakh. How does the law treat this agreement?

The agreement is void because its meaning is uncertain. Section 29 makes agreements void when their meaning is neither certain nor capable of being made certain. Since nothing shows which kind of oil is meant, stating the price does not help, and the agreement is void rather than voidable.

  1. AValid, as consideration of Rs 3 lakh has been stated
  2. BVoidable at Omar's option
  3. CVoid, because its meaning is not certain or capable of being made certainCorrect
  4. DValid, as the Court will choose the oil

Explanation

Section 29 declares agreements void if their meaning is not certain or capable of being made certain. Its first illustration, a sale of "a hundred tons of oil" with nothing to show the kind, is void. Stating a price does not cure the uncertainty about the subject matter, and the agreement is void rather than voidable.

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