Certainty in Contracts Quiz

According to Section 30 of the Contracts Act 1950, agreements that are uncertain are:

• Valid

• Void

• Conditional

• Enforceable only with mutual consent

Which of the following is an example of an agreement void due to uncertainty?

• A agrees to sell B "100 tons of oil" without specifying the type.

• A agrees to sell B "one hundred tons of coconut oil."

• A agrees to sell B "one thousand gantangs of rice at a price to be fixed by C."

• A agrees to sell his "white horse for dollars five hundred."

In the example where A deals in coconut oil and agrees to sell B "100 tons of oil," the agreement is:

• Void

• Valid because the subject matter can be inferred

• Voidable

• Subject to further negotiation

What happens if the third party (e.g., C) cannot fix the price in an agreement under Section 30?

• The agreement remains valid.

• The agreement is void.

• The court decides the price.

• The price defaults to the market value.

In the case of Karuppan Chetty v. Suah Thian (1916), the court dealt with issues related to:

• Breach of contract

• Certainty in agreements

• Implied terms

• Performance of contracts

An agreement is void if it includes:

• A fixed price agreed upon by both parties

• A price subject to future determination by a third party

• Two alternative prices without clarity on which one applies

• A clear subject matter

In Illustration (e) under Section 30, an agreement is valid if:

• The subject matter is unclear

• A third party fixes the price

• The price is left undetermined indefinitely

• The agreement is not documented

Section 30 deals with agreements that are:

• Unenforceable due to lack of consideration

• Void due to uncertainty

• Enforceable with explicit terms

• Invalid due to improper documentation

What is a key determinant of certainty under Section 30?

• The parties' mutual understanding

• The clarity of the agreement's terms

• The fairness of the agreement

• The agreement's legality

If a subject matter can be determined based on a party's trade or business, the agreement is:

• Always void

• Conditional on court approval

• Considered certain and valid

• Invalid unless clarified in writing