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CMA Foundation · Fundamentals of Business Laws and Business Communication · Capacity of Parties, Free Consent

Section 10 of the Indian Contract Act, 1872 states that nothing in it affects any law in force in India by which a contract is required to be made in writing or in the presence of witnesses. What does this mean for a contract that such a law requires to be in writing?

Such a requirement continues to apply. Section 10 expressly says it does not affect any law in force in India requiring a contract to be in writing or before witnesses, or any law relating to registration of documents, so those formalities must still be met.

  1. AThe requirement of that other law continues to apply alongside Section 10Correct
  2. BSection 10 overrides the law and oral contracts become valid
  3. CThe requirement applies only if the parties are minors
  4. DThe requirement is lost once consideration is paid

Explanation

The second paragraph of Section 10 preserves other laws requiring writing, witnesses or registration of documents. So the Act does not remove such formalities. The option claiming Section 10 overrides them is wrong because the section expressly saves them.

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