14/03/2026
2024 SCMR 1709
ORAL AGREEMENT
The law relating to oral agreement is quite clear, the terms and conditions which were orally agreed have to be stated in detail in the pleadings and have to be established through independent evidence
Hafiz Oari ABDUL FATEH ------Petitioner
Versus
Ms. UROOJ FATIMA and others---Respondents
(a) Transfer of Property Act (IV of 1882)---
----S. 54---Specific Relief Act (I of 1877), S. 12---Oral agreement to sell---Proof - An oral agreement by which the parties intended to be bound is valid and enforceable; however, it requires to be proved through clearest and most satisfactory evidence---Law relating to oral agreement is quite clear, the terms and conditions which were orally agreed have to be stated in detail in the pleadings and have to be established through independent evidence---When a party seeks a decree of specific performance for the sale of immovable property based solely on an oral agreement, the onus is on that party to demonstrate that there was a mutual agreement and consensus between both parties regarding the terms of the oral contract---Party claiming the existence of an oral agreement must clearly specify the date, time, place, and names of witnesses in their pleadings, such as the plaint or written statement---These requirements are sine qua non to prove an oral agreement to sell---This is because suits involving sales based on oral agreements are more prone to dishonest improvements made by parties in the evidence and pleadings in order to succeed.
Maqbool Ahmad v. Suleman Ali PLD 2003 SC 31; Muhammad Riaz and others v. Mst. Badshah Begum and others 2021 SCMR 605 and Moiz Abbas v. Mrs. Latifa and others 2019 SCMR 74 ref (b) Civil Procedure Code (V of 1908)---
7. The issue in the present case is whether the petitioner proved the existence of oral agreement of sale in accordance with the law. between them. The basic requirements of a valid and enforceable contract are offer, acceptance, exchange of consideration and mutuality of obligations. Further, a fundamentally important ingredient 8. It is a settled principle of law that a contract is an agreement having a lawful object, entered into voluntarily by two or more parties each of whom intends to create one or more legal obligations of a valid contract is that it should be between the parties who are competent to contract An oral agreement by which the parties intended to be bound is valid and enforceable; however, it requires to be proved through clearest and most satisfactory evidence 9 It is a well-established legal principle that when a party seeks a decree of specific performance for the sale of immovable property based solely on an oral agreement, the onus is on that party to demonstrate that there was a mutual agreement and consensus between both parties regarding the terms of the oral contract. Reference may be made to the case reported as Maqbool Ahmad v. Suleman Al1 (PLD 2003 SC 31). wherein it was ruled that a person enterıng into an oral agreement has to prove the oral agreement according to the definition of agreement in Contract Act, 1872 Section 2(h).
A party claiming the existence of an oral agreement must clearly specify the date, time, place, and names of witnesses in their pleadings, such as the plaint or written statement. These requirements are sine qua non to prove an oral agreement to sell which have been settled by this Court in var1ous decisions. Reference may also be made to the case of Muhammad Riaz and others y. Mst. Badshah Begum and others (2021 SCMR 605). This is because suits involving sales based on oral agreements are more prone to dishonest improvements made by parties in the evidence and pleadings in order to succeed. This has been so held in the case of Moiz Abbas v Mrs Latifa and others (2019 SCMR 74) as reproduced below:-
"8. We find that no date, time, place or names of witnesses of the alleged oral agreement have been mentioned in the reply to the legal notice, the written statement, or the sut filed by the respondent. The learned counsel attempted to argue that the said gaps had been filled by the witnesses of the Respondents in their affidavits in evidence. We are not impressed by this argument,. These improvements are clearly beyond the pleadings and constitute and attempt to improve the case of the Respondents as an afterthought. Such course of action is not permitted by law. Thesc requirements are sine qua non to prove an oral agreement to sell which have been settled by this Court in numerous judgments time and again. These are clearly missing in this case. Suits involving sales based on oral agreements are more susceptible to improvements made by parties in the evidence and pleadings in order to succeed, It is imperative that all of these requirements spelt out by Courts with a view that only bona fide oral agreements lead to grant of decrees, need to be strictly enforced and Courts must insist that these be fulfilled at the carliest so as to ensure that an oral agreement is fully proved and the device of oral agreement is not abused by unscrupulous and devious litigants to get decrees by fraud, deceit, skallfully made improvements at different stages the trial.
Thus, the law relating to oral agreement is quite clear, the terms and conditions which were orally agreed have to be stated in detail in the pleadings and have to be established through independent evidence which is neither the case of the petitioner nor was it so set up before the lower fora.