CS Professional · Drafting, Pleadings and Appearances · Drafting of Commercial Contracts
A drafter prepares an agreement where Ghosh Realty will pay Pillai Builders Rs 8 lakh when Pillai Builders' son marries Ms Tara. Before any marriage, Ms Tara dies unmarried. Under Section 32, what is the status of the agreement?
The agreement becomes void. Under Section 32, a contract contingent on an event happening becomes void if that event becomes impossible. Since Ms Tara died unmarried, the marriage can never occur, so the payment obligation cannot be enforced.
- AIt becomes void because the event has become impossibleCorrect
- BIt remains enforceable until Pillai Builders' son marries another person
- CIt is enforceable at once because the promise was made for consideration
- DIt is voidable at Ghosh Realty's option only
Explanation
Section 32 states that if the event on which a contingent contract depends becomes impossible, the contract becomes void. The marriage to Ms Tara can never occur after her death. The position is the same as the illustration in the Act about a marriage that cannot take place.
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