PRINCIPLE : Agreements, the meaning of which is not certain, or capable of being made certain, are void. FACTS : Ila Nayak wants to buy a motorbike to reduce her waiting time for her daily commute to work. She can pay up to Rs. 35,000 for a second hand motorbike. Dev and Ila agree that Ila will initially pay a sum of Rs. 31,000 for the motorbike and if the mileage given by the motorbike exceeds 60 km per litre on an average for five months following the sale – then Ila will pay an additional sum of Rs. 3,000. Is this a valid agreement ?

Option A: This is an invalid agreement since Ila is not paying the entire price of the motorbike at once

Option B: This is a valid agreement as the price of the motorbike is capable of being made certain

Option C: This is a valid agreement as Ila has already paid thirty one thousand rupees which was accepted by Dev

Option D: This is an invalid agreement since Dev and Ila can disagree if the motorbike was actually able to give a mileage of 60 km per litre for five months

Correct Answer

Option: b

Explanation

Chapter II of Section 29 of THE INDIAN CONTRACT ACT describes Agreements void for uncertainty.

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