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Report No. 13


26. Clause (g).-

The Director of Legal Studies has also made the suggestion that it should be provided in section 2(g) that agreements of imperfect obligations are not void, but only unenforceable. He has mentioned an unstamped agreement as an instance of such a case. Such an instrument, which is a record of an agreement, is neither receivable in evidence nor can be acted upon (section 35, Stamp Act). Since the decision of the Privy Council in Mahanth Singh v. U Ba Yi, AIR 1939 PC 110 (113), the law is well established that the expression "unenforceable by law" does not mean unenforceable by reason of some procedural regulation, e.g., the law of limitation, but unenforceable by reason of substantive law. In view of this, it is unnecessary to introduce the suggested change.

Indian Contract Act, 1872 Back

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