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CSEET · Business Laws and Management · Elements of Law of Contracts

Aarav agrees to buy Bhavna's scooter for a fixed price if Chetan, to whom she first offered it, refuses to buy it. Which statement is correct under Section 32?

The contract can be enforced only after Chetan refuses to buy the scooter. Under Section 32, a contract contingent on an uncertain event happening cannot be enforced unless and until that event happens, and here the event is Chetan's refusal.

  1. AThe contract can be enforced at once because both parties have consented
  2. BThe contract is void because the event is uncertain
  3. CThe contract can be enforced only after Chetan refuses to buy the scooterCorrect
  4. DThe contract can be enforced only if Chetan buys the scooter

Explanation

Section 32 says a contingent contract to do something if an uncertain future event happens cannot be enforced unless and until that event has happened. Here the event is Chetan's refusal, so enforcement waits until then. Enforcement at once is wrong because the event has not yet occurred.

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