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In the textbook classification, what is the term for an otherwise valid contract that cannot be enforced solely because a required procedural formality has not been complied with?

Question and options

In the textbook classification, what is the term for an otherwise valid contract that cannot be enforced solely because a required procedural formality has not been complied with?

  1. Void contract

  2. Illegal agreement

  3. Valid contract

  4. Unenforceable contract

Answer and explanation

Correct answer: D - Unenforceable contract

An unenforceable contract is one that is valid in substance but cannot be enforced in court because a formality the law requires, such as writing, registration or stamping, has not been complied with. A void contract is different: it lacks legal force altogether (section 2(j) of the Indian Contract Act, 1872), and an illegal agreement is void because its object is unlawful. Section 10 of the Act preserves any law that requires a contract to be in writing, attested or registered.

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