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Fundamentals of Business Laws and Business Communication · Contingent Contracts

Agreements Contingent on Impossible Events (Section 36)

Updated 10 October 2026 · Fact-checked

Under Section 36 of the Indian Contract Act, 1872, a contingent agreement to do or not to do something if an impossible event happens is void. It is void whether or not the parties knew the event was impossible when they made the agreement. To solve a question, test whether the event can ever happen.

Understand Agreements Contingent on Impossible Events (Section 36)

A contingent contract is a contract to do or not to do something if some event, collateral to the contract, does or does not happen. Sections 31 to 36 deal with such contracts. Section 36 covers a special case: the event on which the promise depends is impossible.

The rule is simple. If the agreement depends on an impossible event, the agreement is void. It never becomes enforceable. Nobody can sue on it.

The key words are 'whether the impossibility of the event is known or not known to the parties'. So it does not matter if both parties knew the event could never happen, or if they believed it could. The agreement is void from the start either way.

The illustration in the Act itself is this: A agrees to pay B ₹1,000 if two straight lines enclose a space. Two straight lines can never enclose a space, so the event is impossible in itself and the agreement is void.

Do not confuse this with a valid contingent contract. A valid one depends on an uncertain event that is possible, like rain, a ship arriving or a person's marriage. Under Section 32, a contract contingent on an event happening becomes enforceable when the event happens. If that event becomes impossible, the Section 32 contract becomes void. Under Section 33, a contract contingent on an event not happening becomes enforceable when the happening of that event becomes impossible. Section 36 is different: it covers an event that is impossible in itself, such as two straight lines enclosing a space, and the agreement is void. Treat later impossibility under Sections 32 and 33 separately.

Key formulas to remember

Section 36 rule
Agreement contingent on an impossible event = VOID
Applies whether or not the parties knew of the impossibility when making the agreement.
Test of impossibility
Event is impossible in itself → Section 36 applies (void)
The statutory example is an event impossible in nature, such as two straight lines enclosing a space.
Effect on parties
Void agreement → no enforceable rights or duties
Neither party can sue the other for performance.
Contrast with Sections 32 and 33
Possible but uncertain event = valid contingent contract; event impossible in itself = void agreement under Section 36
Section 32 deals with an event happening and Section 33 with an event not happening. If the event later becomes impossible, a Section 32 contract becomes void, while a Section 33 contract becomes enforceable.

How to solve Agreements Contingent on Impossible Events (Section 36) questions

Use this method for any question on Section 36. It takes under a minute once you practise.

  1. 1Read the facts and find the promise, such as paying money or delivering goods.
  2. 2Find the event on which the promise depends.
  3. 3Check whether that event is collateral to the contract and depends on 'if' or 'when'.
  4. 4Ask whether the event is impossible in itself, one that can never happen.
  5. 5If it is impossible, apply Section 36 and conclude the agreement is void.
  6. 6Ignore whether the parties knew about the impossibility, as it does not change the result.
  7. 7If the event is possible and uncertain, move to Section 32 or 33 instead. If it later becomes impossible, a Section 32 contract becomes void and a Section 33 contract becomes enforceable.
  8. 8State the conclusion in one line: void, so not enforceable.

Quickest way: The impossible-event check

When to use it: Use this when an MCQ describes a promise depending on an event and asks whether the agreement is valid, void or voidable.

  1. Underline the 'if' event in the question.
  2. Ask: can this event ever happen? If it cannot, mark 'void'.
  3. Skip any option that says 'valid if the parties did not know'. Knowledge is irrelevant.
  4. Skip 'voidable' options, because Section 36 declares the agreement void.
  5. If the event is merely uncertain, such as rain or a sale, pick the contingent contract options. If it becomes impossible later, remember: Section 32 contract void, Section 33 contract enforceable.

Common mistakes in Agreements Contingent on Impossible Events (Section 36)

  • Thinking the agreement is valid if the parties did not know the event was impossible.

    Students link good faith with validity.

    Fix: Remember that Section 36 applies whether or not the impossibility is known. Ignorance does not save the agreement.

  • Calling the agreement voidable instead of void.

    Students mix up the terms void and voidable.

    Fix: Voidable means one party can choose to cancel. Section 36 says void, meaning not enforceable from the start.

  • Treating every contingent contract as void.

    Students over-apply Section 36 after reading it.

    Fix: Only contracts depending on impossible events are void under this section. Contracts on possible uncertain events are valid.

  • Mixing up Section 36 with Section 32 or 33 where the event later becomes impossible.

    Both involve impossibility.

    Fix: Check the nature of the event. If it is impossible in itself, use Section 36. If it is a possible event that later becomes impossible, a Section 32 contract becomes void, while a Section 33 contract becomes enforceable.

Worked examples

Example 1

A agrees to pay B ₹1,000 if two straight lines enclose a space. Is the agreement enforceable?

Show the solution
  1. Promise: A will pay B ₹1,000.
  2. Event: two straight lines enclose a space.
  3. Two straight lines can never enclose a space, so the event is impossible.
  4. Section 36 makes such an agreement void whether or not the parties knew of the impossibility.
  5. So it does not matter what A and B knew or believed.

Answer: The agreement is void under Section 36 and cannot be enforced.

Example 2

Which of the following agreements is void under Section 36? (a) A agrees to pay B ₹10,000 if it rains tomorrow. (b) A agrees to pay B ₹10,000 if B's ship returns safely. (c) A agrees to pay B ₹10,000 if B draws a square circle. (d) A agrees to pay B ₹10,000 if B passes the CMA Foundation exam.

Show the solution
  1. Check each event for impossibility.
  2. (a) Rain is uncertain but possible.
  3. (b) A ship returning is uncertain but possible.
  4. (c) A square circle can never exist, so the event is impossible.
  5. (d) Passing the exam is uncertain but possible.
  6. Only (c) depends on an impossible event.

Answer: Option (c) is void under Section 36. The others are valid contingent contracts.

Exam tips

  • Look for the words 'impossible' or 'cannot happen' in the question, and for the classic example of two straight lines enclosing a space.
  • Pick 'void' and not 'voidable' whenever Section 36 applies.
  • If an option talks about the parties' knowledge, remember it does not change the answer.
  • Keep the cases apart when a question mentions an event becoming impossible later. That falls under Sections 32 and 33: a Section 32 contract becomes void, while a Section 33 contract becomes enforceable.

Practice questions from Contingent Contracts

Agreements Contingent on Impossible Events (Section 36): frequently asked questions

What does Section 36 of the Indian Contract Act say?

It says that contingent agreements to do or not to do anything, if an impossible event happens, are void. This is so whether the impossibility is known or unknown to the parties when they make the agreement.

What is the difference between a contingent contract and a void agreement on an impossible event?

A contingent contract depends on a possible but uncertain event and can be enforced once the event happens or fails as the law provides. An agreement on an impossible event is void from the start and cannot be enforced.

Does it matter if the parties knew the event was impossible?

No. Section 36 applies whether or not the parties knew. The agreement is void in both cases.

Is an agreement on an impossible event voidable?

No. It is void, not voidable. Neither party has any right to enforce it.