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CS Professional · Drafting, Pleadings and Appearances · Drafting of Agreements, Deeds and Documents

Sunita Enterprises agrees to sell to Vikram "my white horse for Rs 500 or Rs 1,000". Nothing shows which price was intended. Separately, Sunita agrees to sell Vikram "one thousand maunds of rice at a price to be fixed by Mr. Desai", a named independent valuer. Which statement is correct?

The horse agreement is void, while the rice agreement is not void for uncertainty. Section 29 voids agreements whose meaning cannot be made certain. Two alternative prices with no indication of which applies leave uncertainty, but a price to be fixed by a named third party is capable of being made certain.

  1. ABoth agreements are void for uncertainty
  2. BBoth agreements are valid
  3. CThe horse agreement is void; the rice agreement is not void for uncertainty because the price is capable of being made certainCorrect
  4. DThe horse agreement is valid at the lower price; the rice agreement is void

Explanation

Under Section 29, an agreement is void if its meaning is not certain or capable of being made certain. The alternative prices for the horse have nothing to show which was meant, so it is void. The rice price can be fixed by Mr. Desai, so it is capable of being made certain and is not void on that ground.

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