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

The Correct Option is B

In this problem, we are applying the legal principle that agreements with uncertain terms, or those not capable of being made certain, are considered void. We need to examine whether the agreement between Ila Nayak and Dev falls under this category or if it is valid.

Principle Analysis:
The principle states, "Agreements, the meaning of which is not certain, or capable of being made certain, are void." Therefore, for an agreement to be valid, the terms should either be certain or capable of achieving certainty.

Facts Examination:
1. Ila Nayak wants to purchase a second-hand motorbike and can pay up to ₹35,000.
2. Dev and Ila agree on an initial payment of ₹31,000.
3. An additional ₹3,000 is to be paid if the motorbike provides a mileage of more than 60 km per litre on average for five months.

Analysis of Certainty:
The initial payment of ₹31,000 is certain, and the possibility of an additional ₹3,000 is conditional on a measurable factor: the motorbike’s mileage over five months. The condition is specific and can be practically verified, thus making the agreement terms capable of being made certain. There is no inherent uncertainty in the terms.

Conclusion:
Since the price can be ultimately determined based on a specific and observable criterion, the agreement is valid. Therefore, the most appropriate answer is:

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