Contracts: Certainty and Uncertainty

Abstract

A contract is entered into by the parties to ensure certainty, but it does not ensure certainty due to several reasons. Act of God and anything beyond the control of the parties is covered by the ‘force majeure’ clause and is recognised by law of contracts. There may be uncertainty due to the dynamic nature of law. Uncertainty enhances the risk in a business relationship. The note dwells on the uncertain nature of contracts and why even a detailed contract may remain uncertain, without eliminating risk.