Document Fragment View
Fragment Information
Showing contexts for: consensus ad idem in Sobhag Narain Mathur vs Pragya Agrawal And Ors. on 4 February, 2016Matching Fragments
(iii) What is then the meaning of the word promise? When an offer is accepted, a promise results. However, before the offer is accepted for resulting into a promise or an agreement, the offer has to be a clear offer and acceptance has to be an unconditional acceptance. Included in this aspect of a complete promise as per law is the aspect of consensus ad idem. Consensus ad idem can only exist if there is clarity in the agreement viz clarity in the reciprocal promise viz clarity in the offer and the acceptance. In case, there is lack of clarity or lack of completeness in either the offer or the acceptance, an agreement as required by law will not result.
(iv) We will therefore examine now what is an agreement in law, being a set of reciprocal promises, so as to make an agreement to sell of an immovable property complete in law, and which is the issue to be decided by this Court while deciding issue no.1, and in fact decision on which will be determinative of the suit itself.
8. In a contract for sale of an immovable property i.e an agreement to sell entered into ie the sale deed of an immovable property to be entered into in future, four essential ingredients have to exist and they are: who are the parties to the agreement has to be clear, what is the subject matter of the agreement to sell has to be clear, and what is the total price has to be clear including fourthly as to how the total price is payable i.e whether in lumpsum in advance or partly in advance and partly at the time of execution and registration of the sale deed etc. Besides these aspects, it is also relevant to note that the document in question cannot be said to be an agreement as per the intention of the parties because the parties had intended a formal document to be entered into which only would be the actual contract between the parties. In such circumstances, a court has to examine whether the document which is relied upon was intended by the parties to be a final contract in itself. This is being stated because in some cases an agreement may be complete in itself as required by law and still the parties may state that a formal agreement has to be entered into and in such a case even if a formal agreement is not later on entered into, courts have still held that the original agreement which is complete in itself is an agreement to sell which can be enforced in law by filing a suit for specific performance. However, where the facts and circumstances of the case as reflected from the document itself and/or the surrounding circumstances or actions of the parties show that the original agreement which talks of entering later into an agreement is not a complete contract in the eyes of law, then, courts will have to hold that contract between the parties has not been concluded because there is no consensus ad idem including on the aspects as to the minimum requisite terms for completing an agreement to sell. To complete the narration, it may be stated that there are various other terms which are agreed between a prospective purchaser and a prospective seller of an immovable property; in addition to the four main aspects which are stated above; but even if the other terms are not stated, law steps in and presumes that parties have agreed to those terms and which terms are specified in various sub-Sections of Section 55 of the Indian Contract Act.
9. Let us now therefore come to the issue as to whether the document dated 7.12.2006 is a complete contract in the eyes of law. In the document dated 7.12.2006 who is the buyer and who is the seller is clear and what is the property which is the subject matter of the agreement to sell is also clear. Also is clear what is the total price at which the property has to be sold. The question is whether merely on account of consensus ad idem with respect to these three aspects is the document dated 7.12.2006 is complete contract in the eyes of law.
(iii) In my opinion even if the issue of unearned increase payable to the Delhi Development Authority is to be considered with respect to consensus ad idem, it has to be held that there is lack of consensus ad idem inasmuch as a total price which will come in the pocket of a buyer has to be a definite term in the contract and if unearned increase of a huge amount, possibly running into lacs of rupees, is to be paid for the purpose of transfer of the property, then in case the proposed seller/defendant no. 1 has to pay the same, it has the effect of reducing the final price which will go into the pocket of the proposed seller/defendant no. 1. Total consideration under a contract therefore is a vital term of the contract and thus lack of certainty as to the total price which will go into the pocket of the proposed settler/defendant no.1 is an aspect to show that once there is no agreement on this aspect of who will pay the unearned increase amount there is lack of consensus ad idem for the agreement between the parties to be an agreement/contract enforceable at law. These observations are being made in the specific facts of this case as although ordinarily if an agreement to sell is silent, then it would be the duty of the seller to pay the unearned increase charges, inasmuch as, a proper agreement which was to be legally binding was to be entered into pursuant to the document dated 7.12.2006 and which final and proper agreement to sell could well have had a clause deciding as to which was the party which will be liable to pay the unearned increase charges.