Question

What is the legal status of an agreement with uncertain meaning?
A) Valid
B) Void
C) Voidable
D) Illegal

Answer 1

Hint: Section 29 defines the meaning of a contract that should appear apparent on the surface, but the contract's impact can be provided if its application is identified with adequate clarity. If this is not achievable, the contract will be null and void. It will not be considered vague if there is a slight difficulty in understanding.

Complete answer:
When the conditions of an agreement under Section 29 of the Indian Contract Act, 1872 are vague and unknown, and so cannot be made explicit, the agreement is void. For example, let's say X agrees to trade a tonne of oil. This agreement is unenforceable due to uncertainty, as the intended classification cannot be determined.

A void contract differs from a voidable contract in that a void contract was never legally legitimate to begin with (and will never be enforceable at any point in the future), whereas voidable contracts may be legally enforceable after the underlying contractual faults are fixed. Similarly, void contracts and voidable contracts can be cancelled for the same reasons.

When one of the parties to a contract is unable to fully appreciate the agreement's implications, the contract becomes void. A mentally ill or inebriated person, for example, may not be able to comprehend the terms of the agreement, rendering it void. Furthermore, minors' agreements may be void; nevertheless, some contracts involving minors who have obtained the consent of a parent or guardian may be enforceable.

Therefore the correct answer is option ‘B’.

Note: A void contract is one that is formed between two persons for the purpose of committing illegal acts. For example, because of the illegal character of the agreed-upon action, a contract between an illegal drug supplier and a drug dealer is unenforceable from the start.