Uncertain Agreement

As noted in the Indian Evidence Act 1872, visible uncertainty on the contract surface can be resolved by reference to custom or commercial use. A commercial contract for the sale and purchase of American cotton is, for reasons of “a clause subject to the usual force majeure clause,” not for reasons of indeterminacy or uncertainty. Although the agreement forms the basis of all contracts, not all agreements are applicable. A preliminary question is whether the contract is reasonably secure in its essential terms,[5] such as the price, purpose and identity of the parties. In general, the courts are trying to “make the agreement work”, as in Hillas-Co Ltd/Arcos Ltd[6] the House of Lords found that a “fair specification” conifer timber purchase option was safe enough to be applied if read under previous agreements between the parties. However, the courts do not want to “enter into contracts for persons” and, as a result, scammell and Nephew Ltd/Ouston[7], a clause stating that the price of the purchase of a new van was “for rent” for two years was found to be unenforceable because there was no objective standard for the court to know what the price was or what reasonable price. [8] Similarly, in Baird Textile Holdings Ltd/M-S plc[9], the Court of Appeal held that, since the price and quantity of the purchase were partly uncertain, there could be no delay in M-S being able to properly notify its contract of sale. What is controversial is that the House of Lords has broadened this idea by entering into a good faith agreement to negotiate a future treaty, which is not secure enough to be applicable. [10] (i) – The conditions agreed with the Tribunal`s submission of reasonable conditions for meeting all areas of omission or disagreement; b) A agrees to sell B 100 tonnes of oil of a given denomination called a commercial item. There is no uncertainty that the agreement will not be cancelled. The examples cited above dealt with situations in which the parties had not indicated price or remuneration. What will happen if the treaty does not specify what a party should do in terms of performance? First, if a party has committed to a specific obligation and the contract is clearly legally binding, English law will endeavour to find substance in the undertaking, even if it is described in general.

Durham Tees Valley Airport Ltd/Bmibaby Ltd [2010] EWCA Civ 485 involved a contract under which an airline was tasked with “operating and flying” two of a certain type of aircraft from an airport for a period of ten years. All fees and service payments were included in the contract. Nevertheless, the agreement was deemed too uncertain by the trial judge.

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