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        Case ID :

        1990 (7) TMI 373 - SC - Indian Laws

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        Oral sale agreement for immovable property requires proof of all essential terms before specific performance can be granted. Specific performance based on an alleged oral sale agreement for immovable property requires strict proof of consensus ad idem on all essential terms. ...
                      Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
                        Provisions expressly mentioned in the judgment/order text.

                          Oral sale agreement for immovable property requires proof of all essential terms before specific performance can be granted.

                          Specific performance based on an alleged oral sale agreement for immovable property requires strict proof of consensus ad idem on all essential terms. Although such a contract need not be in writing, the plaintiff must show that the vital terms were finally settled, including payment arrangements, execution and registration of the sale deed, possession, and any statutory clearances. On the facts, these elements were not proved and the later discussions did not establish a concluded bargain. Mere acceptance of price, without proof of agreement on the remaining essential terms, was insufficient. The claim for specific performance therefore failed.




                          Issues: Whether the plaintiffs proved a concluded oral contract for sale of the immovable property so as to entitle them to specific performance.

                          Analysis: A contract for sale of immovable property need not be in writing, but where specific performance is sought on the basis of an alleged oral agreement, the burden lies heavily on the plaintiff to prove consensus ad idem and that the vital and fundamental terms had been settled. On the facts, the alleged bargain did not establish settlement of essential terms such as the time and mode of payment of the earnest money, the time for execution and registration of the sale deed, possession, or the obligation regarding statutory clearance. The evidence also showed that the discussions on the later date failed and that the draft receipts did not refer to any already concluded oral agreement. Mere acceptance of the price, without proof that the remaining vital terms were concluded, was insufficient to establish a binding contract.

                          Conclusion: The plaintiffs failed to prove a concluded oral contract and were not entitled to specific performance.

                          Ratio Decidendi: In a suit for specific performance based on an oral agreement for sale of immovable property, the plaintiff must strictly prove that all essential contractual terms were concluded; mere agreement on price, without proof of consensus on other vital terms, does not create a binding contract.


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