Specific performance : oral agreement to sell is permissible in law, but it has to be proved through credible and un-impeachable evidence.

2024 CLC 1060

Regular Second Appeal No.130821 of 2018

Abdul Rasheed Versus Zahoor-ud-Din (deceased) through his Legal Heirs & others 

No doubt, an oral agreement to sell is permissible in law, but it has to be proved through credible and un-impeachable evidence. Perusal of contents of the plaint shows that no date, time, place &   mode of payment or names of witnesses of the alleged oral agreement to sell have been mentioned therein. These ingredients are sine qua non to prove oral sale without which decree of specific performance cannot be pIndi

Certainly! An **oral agreement to sell** is a verbal contract between parties to buy or sell goods or services. While many people assume that written contracts are the only valid form of agreement, oral contracts are legally binding, although proving their terms can be challenging in court¹. Let's delve into the key points:

1. **Validity of Oral Contracts**:

   - **Generally Valid**: Oral contracts are generally considered as valid as written contracts, depending on the jurisdiction and the type of contract.

   - **Exceptions**: Some contracts, such as those involving real estate conveyance, must be in writing to be legally binding.

   - **Evidence**: To bolster the enforceability of an oral contract, evidence can include:

     - Testimony of witnesses who witnessed the creation of the contract.

     - Actions taken by one or both parties based on the contract.

     - Written correspondence (letters, memos, emails, etc.) related to the agreement.

2. **Complexity Matters**:

   - **Simple Agreements**: Oral contracts are best suited for simple agreements (e.g., trading a used lawn mower for a clothes dryer).

   - **Complex Agreements**: More complex contracts (e.g., employment agreements) should involve written contracts to avoid disputes over finer points.

3. **Enforceability in Pakistani  Law**:

   - **Valid**: A sale agreement can be oral and still be valid under Pakistani  law. It need not always be in writing; adherence to Section 10 of the Contract Act is crucial⁵.

In summary, while oral agreements to sell are legally binding, parties should exercise caution and consider written contracts for more complex deals. Ensuring clear terms and evidence can strengthen the enforceability of oral contracts.

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