CMA Foundation · Fundamentals of Business Laws and Business Communication · Contingent Contracts
Anil agrees to buy Bhavna's horse if Anil survives Chandan. Which statement is correct under the Act?
The contract cannot be enforced by law unless and until Chandan dies in Anil's lifetime. Section 32 says a contract contingent on an uncertain future event happening is unenforceable until that event happens.
- AThe contract is void from the start because survival is uncertain
- BThe contract can be enforced immediately since both parties have consented
- CThe contract cannot be enforced by law unless and until Chandan dies in Anil's lifetimeCorrect
- DThe contract can be enforced only if Chandan dies within one year
Explanation
Under Section 32, a contract contingent on an uncertain future event happening cannot be enforced unless and until the event has happened. Here the event is Chandan's death in Anil's lifetime, as in the Act's horse illustration. No time limit is fixed, so the one-year option is wrong, and uncertainty does not make the contract void.
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