Section 29 of Indian Contract Act

29. Agreements void for uncertainty.— Agreements, the meaning of which is not certain, or capable of being made certain, are void.

Illustrations

(a) A agrees to sell to B “a hundred tons of oil”. There is nothing whatever to show what kind of oil was intended. The agreement is void for uncertainty.

(b) A agrees to sell to B one hundred tons of oil of a specified description, known as an article of commerce. There is no uncertainty here to make the agreement void.

(c) A, who is a dealer in cocoanut-oil only, agrees to sell to B “one hundred tons of oil”. The nature of A’s trade affords an indication of the meaning of the words, and A has entered into a contract for the sale of one hundred tons of cocoanut-oil.

(d) A agrees to sell to B “all the grain in my granary at Ramnagar”. There is no uncertainty here to make the agreement void.

(e) A agrees to sell B “one thousand maunds of rice at a price to be fixed by C”. As the price is capable of being made certain, there is no uncertainty here to make the agreement void.

(f) A agrees to sell to B “my white horse for rupees five hundred or rupees one thousand”. There is nothing to show which of the two prices was to be given. The agreement is void.

Final Thoughts

Introduction

Section 29 of the Indian Contract Act deals with the validity of agreements where the terms are uncertain. It states that if the meaning of an agreement is unclear or cannot be made clear, then such an agreement is considered void. This means the law will not enforce agreements that are ambiguous or vague.

Meaning of ‘Uncertainty’ in Agreements

Uncertainty means lack of clarity or definiteness in the terms of an agreement. For a contract to be valid, its terms must be clear and definite, so that both parties know their rights and obligations. If an agreement is vague or ambiguous, it leads to confusion and unfairness.

Section 29 of the Indian Contract Act states: This means if the agreement cannot be understood or made clear, the law will treat it as if it does not exist.

Explanation with Illustrations

Illustration (a)

• A agrees to sell to B “a hundred tons of oil.”
• Here, the type of oil is not mentioned or specified. It could be any kind of oil—coconut oil, mustard oil, kerosene oil, etc. Since the kind of oil is not clear or specified, the agreement is uncertain. Therefore, the contract is void.

Illustration (b)

• A agrees to sell to B one hundred tons of oil of a specified description, known as an article of commerce.
• Here, the oil is clearly described and known in trade. Hence, there is no uncertainty. This agreement is valid.

Illustration (c)

• A, who is a dealer in coconut oil only, agrees to sell to B “one hundred tons of oil.”
• Since A only deals in coconut oil, the type of oil is understood from the context. The agreement is clear and definite. So, the contract is valid.

Illustration (d)

• A agrees to sell to B “all the grain in my granary at Ramnagar.”
• The term “all the grain” is definite and clear, and the place is specified. There is no uncertainty. This agreement is valid.

Illustration (e)

• A agrees to sell B “one thousand maunds of rice at a price to be fixed by C.”
• The price is uncertain at the moment but can be fixed later by a third party (C). Since the price can be made certain in the future, the agreement is valid.

Illustration (f)

• A agrees to sell to B “my white horse for rupees five hundred or rupees one thousand.”
• It is unclear whether the price is five hundred or one thousand. There is no rule to decide which price applies. The agreement is uncertain and hence void.

Conclusion

Section 29 of the Indian Contract Act highlights the importance of clarity and certainty in contracts. If the terms of an agreement are vague, indefinite, or cannot be made clear, the agreement will be considered void by law. This protects parties from entering into unfair or unclear contracts. However, if the uncertainty can be removed or clarified later (like fixing price by a third party), the agreement will be valid. Thus, every contract must have clear and definite terms to be legally enforceable.