AN INSIGHT OF CONTRACT LAWS WITH RESPECT TO APPLICATION OF VERBAL AND NON-VERBAL AGREEMENTS

ABSTRACT

The law of contracts encompasses various elements of communication that may include verbal or non-verbal, through postal services. The importance of contract has increased up to a great extent here the promises or any such commitments that are made are enforced and they are covered within the ambit of civil law. Here I have put my wholesome efforts to put forth the insights of the verbal and non-verbal agreements defined under the law of contracts. Here the emphasis is on the modes of communication which forms a very vital part of the law of contracts and that is verbal and non-verbal modes through which the communication can be made. The writer has also tried to lay emphasis on the crucial aspects of this field of law.

Keyword: contract, verbal, non-verbal, civil law, proposal, acceptance, consideration.

INTRODUCTION

The law of contracts basically deals with the compromises, commitments or promises made by one party to the other. You will be greatly surprised to know that at present we are all under the blanket of such contract!! Take for instance you buy clothes from a store here along with paying for the bill you are also consenting with the party on the terms and condition so prescribed, here there is this buying and selling generally for^[1]ms a part of our day-to-day life.

Such commitments or promises that we make are legally binding and hence enforceable therefore they are all part of our contemporary life.

As mentioned earlier also the promises or the commitments between or amongst the parties constitute what we call as contract. Contracts are generally binding so that untrue representations cannot be made. However, in order to make a contract binding and enforceable it is necessary to ensure that certain criterions are fulfilled.

ESSENTIAL ELEMENTS FOR CONTRACT TO BE BINDING

Offer – Offer can be defined as something what you ask other to do or not to do to that other in return of something.
Acceptance – here the aforesaid offer is accepted by the party, also counter offer has rooms where some addition, modification or alterations has to be made.
Consideration – There is a consideration if the two parties are consenting, will gain a benefit and will be bound by a commitment.
Competence – it is also required that parties must be above or around eighteen years old and mentally sound.
Legality – legality of the contract is required to be shown before it is made public in the court or be enforceable.

VERBAL AGREEMENTS

A verbal agreement which is also called as oral agreement is the one where no written documentations are needed. Contracts that are made orally have the same. For instance, I

promise you that I will marry you, here there is no written documentation to show that such promise was made. A very example of verbal agreement would when a man enters into physical relationship with the counterpart with the promise of marrying her, that is verbal agreement and is binding, refusal of which would be an offence under Indian Penal Code^[2].

HOW CAN A VERBAL AGREEMENT BE PROVED.

Here it is very vital to note that verbal agreements are quite difficult to prove hence it becomes pertinent to ensure that such agreements are to be proved by the claimant and thus onus of proof lies in his hand.

JUDICIAL RECOGNITION

The courts in dealing with various matters related to oral agreements are accepted if certain essentials are fulfilled. The supreme court came to the conclusion that oral agreements are valid and also binding even if they are not written. The only requirement is all the essential elements must be fulfilled. Here the sale agreement was oral or verbal and also was held valid by the court^[3]

Sheela Gehlot v. Sonu Kochhar & Ors

The Delhi high court came up with the fact that oral agreements are valid and enforceable, no dispute related to their validity but arise unless some written documentation or written agreement to prove their validity. There should be proper proposal of the said agreement and a proper acceptance to such proposal^[4].

Y.V Narasimha Sarma v. Soorapalli Appalaraju

it was clearly held that it is not always necessary that a contract should always be written a verbal agreement would also hold the same position as a non-verbal agreement. A verbal agreement is also valid^[5].

Brij mohan and others vs. Sugra Begum and others

There is no requirement of law that an agreement or contract of sale of immovale property should only be in writing^[6].

Shankardas Narayanlal Mundade vs. new mufossil company limited

Here the verbal agreement got recognition from the court it was said that these agreements have the same footing as that of the non-verbal agreement^[7].

The verbal agreement has to be in consonance with the section 10 of the Indian contract act,

1842.

NON-VERBAL AGREEMENTS

Non-verbal agreements are basically the written documents that are considered of more importance. A compromise or a promise that has been entered into by the parties in paper or in written form are said to be the non-verbal agreement. The written document should have the consent of both the two parties accepting the contract

In comparison to the oral agreements written agreements can more easily be proven. The reason behind is being the physically available evidence. Since these is a presence of a concrete evidence therefore an individual prefers to go with the non-verbal agreement as there are less chances of untrue representation.

This agreement clarifies the details and sign up for the term and conditions that are provided in the agreement. Here both the parties are required to give assent and that assent should be free from any undue influence. Any kind of undue influence will lead to breach of section 10 of the

Indian contract act.

One such example would be you hire a person in your company you make him sign few terms and conditions of the company so this is one such constitutes where there is a offer and thus its acceptance can be inferred from the documents that have been written down and were signed.

BURDEN OF PROOF

S.V Narayanaswamy vs. Savithramma

In the aforesaid case the appellant filed a case for specific performance of a nonverbal agreement. The appellant proved and showed the cheques given by the respondent on the subject matter so concerned. The court held that appellant shall be responsible to produce the required evidences^[8].

VERBAL AGREEMENTS AND NON-VERBAL AGREEMENTS

Verbal agreements	Non-verbal agreements
Verbal agreements may not give the same appearance of formality	Ensures that there was a meeting of the minds and that both parties are aware that a formal agreement is being made.
Generally oral contracts are not recorded. But an oral agreement can later be written down	Written contracts allow parents and providers to keep records of the contract. This is especially helpful in the event of a disagreement about the contract terms.
If you have an oral contract you have two years from the date the contract is broken to sue the other side.	If you sign a written contracts you have four years from the date the contract is broken to sue the other side.
Terms are not written down and the agreement is spoken.	Terms are written down on paper and the agreement is signed.

IMPORTANCE OF NON-VERBAL AGREEMENTS

The direct statements are made by the parties to each other and there is an obligation.

The fear of making mistakes and thus its repercussion.

This kind of agreement make evident that there was meeting of the minds

The non-verbal agreements keep records of the terms and conditions of the contract

here unlike the two consenting parties are required to give their assent on the papers.

Here in the non-verbal agreement longer period of time is given to sue a person who has breached the terms and conditions of the contract

In various business deals, official works or to establish employer – employee relationship these types of agreement can be seen and are entered into for the smooth functioning of the business affairs or various activities

Non-verbal agreement play an important role in the smooth functioning as the written documentation tries to minimise the false representation which is very much seen in form of verbal contracts or agreements.

CONCLUSION

As we can already counter in our day-to-day life that contract, agreements, obligations or commitments have become a major part of our life. It has been established in this paper that oral agreements or what we here referred to as verbal agreement have the same validity as well as enforceability as that of the non-verbal agreements. However it is also the fact that nonverbal agreements hold a better position when big deals amongst various business entities are required to be entered into. The purpose behind such weightage being given to the non-verbal agreement is to ensure and minimise untrue representation as it becomes difficult to establish such obligation in verbal agreements or contracts.

[1] The Indian Contract Act, 1872

[2] Section 375, The Indian Penal Code, 1860.

[3] Alka Bose v. Parmatma devi & Ors (2009) 2 SCC 582

[4] Sheela Gehlot v. Sonu Kochhar & Ors 2006 (92) DRJ 498

[5] Y.V Narasimha Sarma v. Soorapalli Appalaraju 1988

[6] Brij mohan and others vs. Sugra Begum and others 1990 SCR (3) 413

[7] Shankardas Narayanlal Mundade vs. new mufossil company limited

[8] S.V Narayanaswamy vs. Savithramma, September 2013.