Question

Apply the given legal principles to the facts provided in the following of the question and select the most appropriate answer.
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 ₹35,000 for a second hand motorbike. Dev and Ila agree that Ila will initially pay a sum of ₹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 ₹3,000. Is this a valid agreement ?

• A. This is an invalid agreement since Ila is not paying the entire price of the motorbike at once
• B. This is a valid agreement as the price of the motorbike is capable of being made certain
• C. This is a valid agreement as Ila has already paid thirty one thousand rupees which was accepted by Dev
• 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

Answer 1

Answer: (B)

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

Answer 2

The correct option is (B) : This is a valid agreement as the price of the motorbike is capable of being made certain.