#verbal agreement

Bombay High Court rules that a verbal property sale agreement can be specifically enforced if the defendant's silence after a legal notice constitutes conduct under Section 9 of the Indian Contract Act. The judgment underscores that preponderance of probabilities can validate verbal contracts in real estate disputes, impacting property buyers and sellers relying on informal agreements.

The Bombay High Court enforced a 35-year-old verbal property sale contract not merely due to silence, but because the defendant’s conduct - accepting partial payment and failing to rebut a detailed notice - created a preponderance of probabilities that a binding agreement existed. This sets a critical precedent for oral real estate deals where written documentation is absent but conduct strongly implies mutual assent.