Case Law On Oral Agreements
At noon, Innoviva learned that one of the major shareholders would vote for two of the candidates for Sarissa, meaning that Innoviva is in serious danger of losing the vote. The electoral victory depended on a large shareholder remaining. How would she vote? Innoviva`s board of directors considered that the remaining shareholder would vote for the sarissa candidates, so the board of directors allowed its vice-president to agree with Sarissa by essentially accepting his latest proposal. At 2:30 a.m., Innoviva`s vice-president and a representative from Sarissa spoke by telephone. The vice-president made the settlement offer and the Sarissa representative agreed. The lawyers then exchanged a draft agreement over the next two hours. On the other hand, oral agreements are words, gestures, symbols by which one party transmits a promise or a series of promises to another, which becomes a valid oral agreement if accepted by the other party. They may be expressive or implicit. Valid oral agreements are legally applicable in court. It is not, however, of great probative value, because the agreement is obtained by the buer and by second-hand knowledge.
In the case of litigation or legal action, it is difficult for the court to determine the true nature of the facts and terms of the agreement without the bias being applied. An oral agreement is as valid as a written agreement. The legality of an oral agreement cannot be questioned if it falls within the indecency of the requirements of paragraph 10 of the Indian Contract Act of 1872. In the case of S.V. Narayanaswamy vs. Savithramma 2013R.F.A. No. 1163 of 2002 v R.F.A.No.1164 of Karnataka High Court, the complainant sought to prove the existence of an oral agreement on the sale of real estate, which was strongly alleged. With the complainant`s proof allowance, she did so by issuing cheques in several amounts for the entire estate consideration. In developing various pieces of evidence indicating the existence of a whole, the Tribunal confirmed the existence of the verbal agreement based on the examination of the evidence presented. With respect to the validity of oral agreements in the handling of several cases, the courts recognized the acceptability of oral agreements as soon as it was established that they met the essential conditions set out in Section 10. As we see in the case of Alka Bose vs.
Parmatma Devi- Ors [CIVIL APPEAL NO (see 6197 OF 2000], the Supreme Court found that the oral agreements were valid. A sales contract can also be oral and valid. There is no need for an agreement to be written, and more importantly, it should be under Section 10 of the Indian Contract Act. All written and oral agreements are valid if they meet the conditions set out in Section 10. In conclusion, oral agreements are legally applicable in court or in litigation.