In the Matter of Alka Bose vs Parmatma Devi & Ors Complaint no. CIVIL APPEAL NO(s). 6197 OF 2000 decided on 17.12.2008 before Supreme Court of India
The defendant submitted that a contract for sale, like any other contract, is bilateral in nature under which both vendor and the purchaser have rights and obligations. It is submitted that an agreement for sale being a contract for sale, creating a right in the purchaser to obtain a deed of conveyance in terms of the agreement under which, the vendor agrees to convey to the purchaser, and the purchaser agrees to purchase, the subject-matter of the agreement for an agreed consideration, subject to the terms and conditions stipulated in the said agreement, it is bilateral. It is therefore contended that an agreement of sale is neither complete nor enforceable unless it is signed by both parties.
The apex court observed that
In India, an agreement of sale signed by the vendor alone and delivered to the purchaser, and accepted by the purchaser, has always been considered to be a valid contract. In the event of breach by the vendor, it can be specifically enforced by the purchaser. There is, however, no practice of the purchaser alone signing an agreement of sale.
An agreement of sale comes into existence when the vendor agrees to sell and the purchaser agrees to purchase,for an agreed consideration on agreed terms.
It can be oral.
It can be by exchange of communications which may or may not be signed.
It may be by a single document signed by both parties.
It can also be by a document in two parts, each party signing one copy and then exchanging the signed copy as a consequence of which the purchaser has the copy signed by the vendor and a vendor has a copy signed by the purchaser.
Or it can be by the vendor executing the document and delivering it to the purchaser who accepts it.
Section 10 of the Act provides all agreements are contracts if they are made by the free consent by the parties competent to contract, for a lawful consideration and with a lawful object, and are not expressly declared to be void under the provisions of the Contract Act.
