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CMA Intermediate · Business Laws and Ethics · Indian Contracts Act, 1872

Which of the following correctly states a consequence of Section 10 regarding formalities for contracts?

Section 10 leaves untouched any law in force that requires a contract to be in writing or in the presence of witnesses, or that deals with registration of documents. Such formalities apply only where another law demands them.

  1. ASection 10 overrides every other law requiring writing or registration
  2. BSection 10 does not affect any law in force requiring a contract to be in writing or in the presence of witnesses, or relating to registration of documentsCorrect
  3. CSection 10 requires all contracts to be registered
  4. DSection 10 abolishes the need for lawful consideration

Explanation

The second paragraph of Section 10 says nothing in it affects laws requiring a contract to be in writing or before witnesses, or laws on registration of documents. So such requirements continue where another law imposes them. The Act does not itself require registration of all contracts.

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