CMA Foundation · Fundamentals of Business Laws and Business Communication · Contingent Contracts
Anil agrees to buy Bharat's horse if Anil survives Chandra. Chandra is alive, and Bharat sues Anil for the price now. What is the legal position?
Bharat cannot enforce the contract now. A contingent contract dependent on an uncertain future event cannot be enforced by law unless and until that event happens, here Chandra dying in Anil's lifetime. Until then the suit is premature, though the contract is not void.
- ABharat can enforce it immediately because the agreement is made
- BThe contract is void from the start
- CBharat can enforce it only if Chandra dies during Anil's lifetime; it cannot be enforced until thenCorrect
- DBharat can enforce it only if Anil dies first
Explanation
Section 32 says contingent contracts to do something if an uncertain future event happens cannot be enforced unless and until the event happens. Here the event is Chandra's death in Anil's lifetime. It has not happened, so the suit is premature, though the contract is not void unless the event becomes impossible.
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