Business Laws and Management · Elements of Law of Contracts

Contingent Contracts with Time Limits: Section 35

Updated 11 October 2026 · Fact-checked

Section 35 deals with contingent contracts that carry a time limit. If a contract depends on an event happening within a fixed time, it becomes void when the time ends without the event, or when the event becomes impossible. If it depends on the event not happening, it can be enforced once the time ends or non-happening becomes certain.

Understand Contingent Contracts with Time Limits (Section 35)

A contingent contract (Section 31) is a contract to do or not to do something if some event, collateral to the contract, does or does not happen. Example: A promises to pay B ₹10,000 if B's house is burnt.

Sections 32 and 33 deal with contingent contracts without a time limit. Section 35 adds a fixed time. The time limit decides when the contract dies or when it can be enforced.

Case 1: event must happen within a fixed time. The contract becomes void in two situations: (1) the time expires and the event has not happened, or (2) before the time expires, the event becomes impossible. Example: Ramesh promises to pay Suresh money if a certain ship returns within a year. If the ship returns within the year, the contract can be enforced. If the ship is burnt within the year, it becomes void.

Case 2: event must not happen within a fixed time. The contract may be enforced in two situations: (1) the time has expired and the event has not happened, or (2) before the time expires, it becomes certain that the event will not happen. Example: Ramesh promises to pay Suresh money if the ship does not return within a year. It can be enforced if the ship does not return within the year, or is burnt within the year.

A simple way to think: in Case 1 you are waiting for something to happen, so time running out kills the contract. In Case 2 you are waiting for something not to happen, so time running out (or certainty) lets the contract be enforced.

Key formulas to remember

Section 31: contingent contract: Contract to do or not to do something if a collateral event does or does not happen; The event must be collateral, that is, it is not part of the main promise itself.
Section 35, first part (event must happen within fixed time): Void if time expires without the event, or the event becomes impossible before the time; If the event happens within the time, the contract can be enforced.
Section 35, second part (event must not happen within fixed time): Enforceable when time expires and event has not happened, or when it becomes certain before expiry that it will not happen; Section 35 says such contracts 'may be enforced by law'.
Section 32 (no time limit, event happens): Cannot be enforced until the event has happened; void if the event becomes impossible; Use it when the question gives no fixed time.
Section 33 (no time limit, event does not happen): Enforceable when the happening of the event becomes impossible, and not before; Use it when the question gives no fixed time.

How to solve Contingent Contracts with Time Limits (Section 35) questions

Use this method for any scenario or MCQ on contingent contracts with a time limit.

1Confirm it is a contingent contract: the promise depends on a collateral uncertain event (Section 31).
2Check whether a fixed time is given. If none, think of Section 32 or 33. If yes, think of Section 35.
3Decide the type: does the promise depend on the event happening, or on the event not happening?
4If the event must happen within the time: ask if it happened in time. If yes, enforceable. If the time expired without it, or it became impossible earlier, the contract is void.
5If the event must not happen within the time: ask if the time has expired without the event, or if it became certain earlier that it will not happen. If yes, enforceable. If the event happens within the time, it cannot be enforced.
6Match the result to the option that uses the correct word: void or enforceable.
7In a written answer, name the section, state the rule, apply it to the facts, and give a clear conclusion.

Quickest way: Two-line time test

When to use it: Use this for one-mark MCQs where a ship, deal or event has a deadline.

Underline the words 'happens' or 'does not happen' and the deadline.
If 'happens within': no event by the deadline, or event impossible earlier, means void.
If 'does not happen within': deadline passes with no event, or event becomes impossible earlier, means enforceable.
If no deadline is mentioned, switch to Section 32 or 33.

Common mistakes in Contingent Contracts with Time Limits (Section 35)

Saying a contract on the event 'not happening' becomes void when the time expires.
Students apply the first rule to both cases.
Fix: Check the wording. When the promise depends on the event not happening, expiry without the event makes the contract enforceable.
Treating the burning of the ship as making both ship contracts void.
Students think any bad event ends the contract.
Fix: If payment depends on the ship returning, the loss makes it void. If payment depends on the ship not returning, the loss makes it enforceable.
Waiting for the deadline when the event has already become impossible.
Students forget the 'before the time fixed' limb.
Fix: Both parts of Section 35 act early. The contract becomes void, or enforceable, as soon as impossibility or certainty is established.
Mixing Section 35 with Sections 32 and 33.
All three deal with contingent contracts and sound alike.
Fix: Ask whether a fixed time is given. Fixed time means Section 35. No time means Section 32 or 33.
Calling a contract contingent when the event is part of the main promise.
Students overlook the word 'collateral' in Section 31.
Fix: Look for an outside event on which the promise depends, not the performance itself.

Worked examples

Example 1

Anil promises to pay Bharat ₹50,000 if a certain cargo ship returns to Mumbai port within one year. Four months later the ship sinks at sea. What is the legal position?

Show the solution

The promise depends on a collateral uncertain event, so it is a contingent contract.
A fixed time of one year is given, and the event must happen within it. Section 35 applies.
The ship sinks before the time ends, so the event becomes impossible within the time.
Under Section 35, such a contract becomes void if, before the time fixed, the event becomes impossible.

Answer: The contract becomes void. Anil need not pay ₹50,000.

Example 2

Meera promises to pay Kiran ₹20,000 if a certain ship does not return within a year. The year ends and the ship has not returned. Which statement is correct? (a) The contract is void (b) The contract may be enforced (c) The contract is voidable at Kiran's option (d) The contract is illegal

Show the solution

The promise depends on the event not happening within a fixed time, so the second part of Section 35 applies.
The time fixed has expired and the ship has not returned.
Section 35 says the contract may be enforced by law in this situation.
Option (a) is wrong because void applies to the first case. Options (c) and (d) have no basis in the section.

Answer: (b) The contract may be enforced.

Exam tips

In MCQs, first spot whether the event must happen or must not happen. This one word decides the answer.
Remember the ship illustrations. Most questions are variations of them.
Watch for 'before the time fixed'. The event can become impossible or certain before the deadline, and the result follows immediately.
Check if a deadline is stated. If not, answer under Section 32 or 33, not Section 35.
Use the exact words 'void' and 'may be enforced' in written answers.

Practice questions from Elements of Law of Contracts

Contingent Contracts with Time Limits (Section 35) in other exams

The same ground in other exams, if you are preparing for more than one or want another angle on it.

Contingent Contracts with Time Limits (Section 35): frequently asked questions

What does Section 35 of the Indian Contract Act say?

It covers contingent contracts with a fixed time. If the event must happen within the time, the contract becomes void when the time expires without it or the event becomes impossible. If the event must not happen within the time, the contract may be enforced once the time expires or non-happening becomes certain.

What is the difference between Section 32 and Section 35?

Section 32 deals with contingent contracts on an event happening, with no time limit. It cannot be enforced until the event happens and is void if the event becomes impossible. Section 35 applies when a fixed time is attached.

When can a contract contingent on an event not happening be enforced under Section 35?

It can be enforced when the fixed time has expired and the event has not happened. It can also be enforced earlier if it becomes certain before the time ends that the event will not happen.

Is a wagering agreement the same as a contingent contract?

No. A contingent contract depends on a collateral event, as defined in Section 31. Study wagering agreements separately in the classification of contracts.