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

Ravi agrees to sell to Meena "my scooter for Rs. 40,000 or Rs. 50,000", with nothing to show which price applies. Both parties are competent and consent freely. What is the legal status of this agreement?

The agreement is void for uncertainty. Section 29 declares void any agreement whose meaning is not certain or capable of being made certain. Since nothing shows whether the price is Rs. 40,000 or Rs. 50,000, the essential term is uncertain, so the agreement cannot be a contract under Section 10.

  1. AVoidable at Meena's option
  2. BVoid for uncertaintyCorrect
  3. CValid, as Meena may choose the price
  4. DValid, as the higher price will apply

Explanation

Section 29 makes agreements void where the meaning is not certain or capable of being made certain. Illustration (f) of that section, the white horse at one of two prices, is the same situation. Nothing here fixes the price, so the agreement is void, not voidable.

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