Question

Legal Principle: An agreement, the meaning of which is not certain, or capable of being made certain, is void.

Factual Situation: A purchased a horse from B and promised that if the horse was lucky to him, he would give Rs.50 more or he would purchase another horse.
Issue: Is there a valid contract between A and B?

• A. Yes, there is a valid contract and B will be liable if the horse did not prove lucky.
• B. There is no valid contract as the terms of the contract are so vague and loose.
• C. It is a voidable contract at the option of A.
• D. None of these.

Answer 1

The correct option is B There is no valid contract as the terms of the contract are so vague and loose.

Section 29 of the Indian Contract Act, 1872 states that where the agreements whose meanings are not certain or where they are not capable of being ascertained, they become void. In the present instance, the contract relates to this horse or some other horse depending on a vague condition of fortune. Further, the object of sale and consideration are not certain.