In the case of S.V. Narayanaswamy vs. Savithramma 2013R. F.A.No.1163 of 2002 v R.F.A.1164 of Karnataka High Court, the complainant successfully demonstrated the existence of an oral agreement. The applicant has lodged an appeal for the practical performance of the sales contract. The sales contract was oral. The complainant presented the cheques the respondent received for examination of the object. The respondent deliberately contacted the agreement. Even the witnesses interviewed knew that there was an agreement between the complainant and the respondent. After reviewing the applicant`s evidence, the Tribunal found that there was an oral agreement between the two parties. The cheques were proven to be proof that a considerable amount was paid.
This clearly proves the oral agreement. Under the 1872 Act, a valid oral agreement of value can be obtained in court. However, it is always difficult to prove the existence or exact terms of the agreement in the event of a dispute. In this article, Himanshu Sharma, NUJS` Diploma in Entrepreneurship Administration and Business Laws, Kolkat discusses the applicability of oral agreements under Indian law. While these next factors are not necessary to establish a valid oral agreement, it is generally recommended that the parties incorporate it, as they may be useful if they are to prove the existence of an oral contract: the Indian Contract Act 1872, Section 2 (e), defines an agreement as “any promise and set of promises that are the mutual consideration of an agreement.” Suppose Party A agrees to sell a $400 pound to Part B. Part B accepts the agreement verbally and sends $400 to Part A. If Party A does not send the manual to Party B, but retains the $400, then Party A has broken its oral contract. Thus, Part B can sue Part A for breach of contract and recover the costs of the manual that was never received.
In the case of S.V. Narayanaswamy vs. Savithramma 2013R.F.A. No. 1163 of 2002 v R.F.A.No.1164 of Karnataka High Court, the complainant sought to prove the existence of an oral agreement on the sale of real estate, which was strongly alleged. With the complainant`s proof allowance, she did so by issuing cheques in several amounts for the entire estate consideration. In developing various pieces of evidence indicating the existence of a whole, the Tribunal confirmed the existence of the verbal agreement based on the examination of the evidence presented. Without the testimony of the agreement, the aunt could have 200 dollars and a decent relationship with her nephew. This was done by Delhi High Court, in the case of Nanak Builders and Investors Pvt. Ltd. vs. Vinod Kumar Alag AIR 1991 Delhi 315, the court having decided that even an oral agreement can be a valid and enforceable contract.
Therefore, it is not strictly necessary, in the strict sense, for a contract to be entered into in writing, unless the parties themselves are considering reducing the terms of the contract. In an interesting case, the Supreme Court made a remark on the oral agreement regarding Section 70 of the Indian Contract Act, Food Corporation of India vs. Vikas Majdoor Kamdar Sahkari Mandli Ltd 2007 MANU/SC/4367/2007, is the case where such an observation is made. Apex Court stated that if an oral agreement is entered before the court but is not proven, the person is entitled to compensation in accordance with section 70 of the act as a principle of quantum seedling. This principle means that the work is done beyond the contract and that the defendant has resorted to work. In one case, a seller delivered the goods from B to C by default, and C received the benefits of those goods on the trains. Second, C B must compensate for these benefits. In the case of T Jayaram vs. Naidu. Yasodha and Ors in 2007, C.M.P.No 1538 of the Madras High Court in 2006, it was a matter of reducing certain benefits.