Q. Can there be a contract to enter into a contract?
Bihar Judicial Service Exam, 2006 (Same question in different words).
Ans: There cannot be a contract to enter into a contract - Puneet Beriwala v. Subha Sanyal, AIR 1988 Cal 44. and Van v. Alexander , (1912) 1 Ch 284.
Reasons: Section 29 speaks that agreements the meaning of which is not certain or capable of being made certain are void.
In the famous case of Puneet Beriwala v. Subha Sanyal referred above, the Calcutta High Court held that an agreement to agree in the future is void, for there is no certainty whether the parties will be able to agree.
The view expressed by Calcutta High Court in Puneet Beriwala v. Subha Sanyal finds support from the famous case of Van v. Alexander referred. In this case Lord Parker observed that law does not recognize a contract to enter into a contract.
But former Law Minister of India and Learned Author A.K. Sen remarks that an agreement to enter into an agreement in the future is void for uncertainty unless all the terms of the proposed future agreement are agreed expressly or by implication (Commercial and Industrial Law, 7 th Edn., page 59).
From the above discussions it is clear that as a general rule there cannot be a contract to enter into a contract because there is no certainity whether the parties will be able to agree.
Source : Problems and Solutions on Civil Law by Kishor Prasad