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CSEET · Business Laws and Management · Elements of Law of Contracts

Ravi and Meera agree orally on a sale of a movable item, with free consent, competent parties, lawful consideration and lawful object. No law requires writing for this agreement. Under Section 10, what is the position of the agreement?

The oral agreement is a valid contract. Section 10 makes an agreement a contract when it has free consent, competent parties, lawful consideration and object, and is not declared void. Writing, witnesses or registration are needed only if some other law requires them, and none applies here.

  1. AIt is a valid contract, since the Section 10 essentials are met and no law requires writingCorrect
  2. BIt is void, because every contract must be in writing
  3. CIt is voidable, because no witnesses were present
  4. DIt is unenforceable until it is registered

Explanation

Section 10 makes all agreements contracts if the stated essentials exist and they are not declared void. Writing, witnesses or registration matter only where another law in force requires them. Here none is required, so the oral agreement is valid.

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