I want know that when the date of the fulfillment of the transfer of property is given then can it be extended by oral agreement or is it necessary to complete the transaction on the given date and failed to do so the agreement will be dismissed off? And when the agreement is made in writing thn orally the changes can be made or not?? When the agreement is not performed on the given date is it liable to be dismissed off automatically?
Oral Agreement does not create any legal boundation , practically to avoid any legal hassle it is suggestable to do written agreement.
If Agreement is not performed on the given date then the conditions which were mentioned in the agreement incase of non-payment will become enforceable and the other party may take the action on the same. It is suggestable to dismiss in written and mutually to avoid future litigation.
In terms of Section 10 of the Contract Act, “all agreements are contracts if they are made by the free consent of the parties competent to contract, for a lawful consideration and with a lawful object and are not expressly declared to be void”.
Thus, in order to create a valid contract, the following elements should be present :
- Intention to create legal obligation through offer and acceptance should be present.
- Free consent of the parties is necessary.
- Competency or capacity of parties to enter into contract must be ensured.
- Lawful consideration & lawful object should be present; and
- Agreement not expressly declared to be void.
Offer and Acceptance: In the first place, there must be an offer and the said offer must have been accepted. Such offer and acceptance should create legal obligations between parties. This should result in a moral duty on the person who promises or offers to do something. Similarly this should also give a right to the promise to claim its fulfillment. Such duties and rights should be legal and not merely moral.