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

Section 10 preserves the operation of certain other laws. Which statement correctly reflects this?

Section 10 does not affect any law in force in India that requires a contract to be in writing or witnessed, or any law on registration of documents. Such special formalities continue to apply where those laws demand them, while other agreements need no such formality.

  1. ASection 10 overrides any law requiring a contract to be in writing or witnessed
  2. BSection 10 does not affect any law in force in India requiring a contract to be in writing or in the presence of witnesses, or any law relating to registration of documentsCorrect
  3. CSection 10 applies only to contracts made in writing and witnessed
  4. DSection 10 makes registration compulsory for all contracts exceeding a stated value

Explanation

The second paragraph of Section 10 states that nothing in it affects any law in force in India requiring writing or witnesses, or any law relating to registration of documents. Hence such special formalities remain binding where those laws apply. The other options misstate this saving clause.

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