Home › CMA Foundation › businesslaws › Essential Elements of a Contract › For a contract under ICA 1872, the terms of agre…
For a contract under ICA 1872, the terms of agreement must be:
ANotarised in writing
BConditional on consensus of three parties
CCertain and capable of performance
DRegistered with the government
Answer & Solution
Correct answer: C. Certain and capable of performance
1. Per OCR: "Certain and Capable of Performance: The terms of agreement must be certain and capable of performance."
2. Uncertain terms = unenforceable.
3. Example given: "Mr. Y agrees to sell Mr. V some toys" — type/value not discussed = uncertain.
_Source: ICMAI BoS CMA Foundation Paper 1 (FBLC) — Paper1_07042026.pdf, Module 2 §2.1 (page 51)_