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Sec. 32 Enforcement of contracts contingent on happening of an event

A contingent contract which is to do or not to do anything if an uncertain future event happens cannot be enforced by law unless and until that event has happened. If the event becomes impossible, such a contract becomes void.

 

Example

Om makes a contract with Jai to sell a horse to Jai at a specified price, if Jagadish, to Whom the horse has been offered, refuses to buy the horse. The contract cannot be enforced by law unless and until Jagadish refuses to buy the horse.

Sec. 33 Enforcement of contracts contingent on non-happening of an event

Contingent contracts to do or not to do anything if an uncertain future event does not happen can be enforced when the happening of such event becomes impossible, and not before that.

 

Example

A agrees to pay B a sum of money if a certain ship does not return. The contract can be enforced when the ship sinks.

Sec. 35(1) Contract contingent on the happening of an event within a fixed time

A contingent contract which is dependent on the happening of an future uncertain event becomes void if the event does not happen within the expiry of the fixed time, or before the time fixed, the event becomes impossible.

 

Example

X insures his factory by getting a fire insurance from XYZ & Co. for a period of 1 year. Such contract can be enforced if the factory gets destroyed by fire within a period of 1 year. If there is no occurrence of fire within a period of 1 year then the contract becomes un enforceable.

Sec. 35(2) Contract contingent on the non-happening of an event within a fixed time

A contingent contract which is dependent on the non-happening of an future uncertain event become enforceable if such an event on which the contract is contingent does not happen within a fixed time or before the fixed time, the happening of such event becomes impossible.

 

Example

A promised to pay a sum of ₹ 10,000 to B, if a certain ship does not return within a year. The contract may be enforced if the ship does not return within a year, or is shrunk or burnt within a year.

Sec. 34 Contracts contingent which is dependent on the future conduct of a third person

This is a situation where the contingency is the conduct of a third person and the performance of the contract depends on the way the third person behaves. If a contingent contract is dependent on the way in which a person will act at an unspecified time, the event shall be considered to become impossible when such person does anything which renders it impossible.

Sec. 36 Contingency of impossible events

The contingent contract dependent upon the happening of an impossible event is void and cannot be enforced. The contract is void because it can never be enforced as the impossible event on which the contingent contract is dependent will never happen.

 

Note: The agreement is void, whether the impossibility of the event is known or not to the parties to the agreement at the time when it is made.

 

Example

Raj agrees to pay Ratan ₹ 1,000 if two straight lines enclose a space. The agreement is void.

 

Wagering agreement
Contingent contract
It always consists reciprocal promises
It may or may not contain reciprocal promises
It is void
It is valid
It is purely a game of chance and the parties have no other interest in the subject matter
There is an interest of the parties in the occurrence of the event
The future event is the only deciding factor
The future event is only a collateral determining factor




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