Question

Agreements, the meaning of which is not certain, or capable of being made certain, are ______.

• A. Voidable.
• B. Void.
• C. Illegal.
• D. Valid.

Hint:

An agreement is not void if its terms, although not currently certain, are capable of being made certain in the future (e.g., by reference to a market rate or past transactions).
Only if the meaning is incapable of being made certain is it declared void.

Answer 1

The Correct Option is B

Step 1: Understanding the Question:
The question asks about the legal status of agreements whose terms are vague, ambiguous, uncertain, or cannot be made definite.

Step 2: Key Legal Principles and Approach:
The requirement of certainty in the terms of an agreement is governed by Section 29 of the Indian Contract Act, 1872.
We must analyze the wording of Section 29 to determine the legal consequence of such uncertainty.

Step 3: Detailed Explanation:

• Statutory Provision: Section 29 of the Indian Contract Act, 1872, states: "Agreements, the meaning of which is not certain, or capable of being made certain, are void."

• The Rule of Certainty: For an agreement to be enforceable as a contract, its terms must be clear and definite so that the courts can determine the exact obligations of the parties.

• If the terms are completely indefinite, there is no consensus ad idem (meeting of minds) on specific terms, and the court cannot create a contract for the parties.

• Illustrations of Uncertainty:

• If A agrees to sell to B "a hundred tons of oil", but there is nothing to show what kind of oil was intended, the agreement is void for uncertainty.

• However, if A, who is a dealer in coconut oil only, agrees to sell B "a hundred tons of oil", the nature of A's trade indicates that coconut oil was intended, making the meaning capable of being made certain, and thus the agreement is valid.

• Since the question states that the meaning is neither certain nor capable of being made certain, the agreement is void under Section 29.

• Therefore, Option (B) is the correct answer.

Step 4: Final Answer:
According to Section 29 of the Indian Contract Act, 1872, agreements characterized by incurable uncertainty are void, making Option (B) the correct answer.