Question

Identify which of the following statement is true and which is false.
L. The Court will not enforce a contract the terms of which are uncertain.
M. An agreement to agree in the future constitutes a binding contract.
N. A contract with an intention to contract is not a contract.

Select the correct answer from the options given below-

L M N

• A. False False False
• B. False True True
• C. True True True
• D. True True False

Answer 1

The correct option is D True True False

The essential elements of a contract under the Indian Contract Act, 1872 (Section 10) are as follows:

(1) There must be an agreement whether it be for current transaction or for a future transaction.

(2) The purpose or object of the contract must be lawful.

(3) The parties must have capacity to contract.

(4) There must be free consent.

(5) The terms and conditions of the contract must be certain and possible to perform.

(6) They must have an intention to enter into contract i.e. they should intend their agreement to have legal consequences and not otherwise.