CMA Foundation · Fundamentals of Business Laws and Business Communication · Contingent Contracts
Anil promises to pay Bharat Rs 50,000 when Bharat marries Chitra. Before any marriage, Chitra dies. What is the legal status of the contract under Section 32?
The contract becomes void. Under Section 32, when the uncertain event on which a contingent contract depends becomes impossible, as when Chitra dies unmarried to Bharat, the contract is void and cannot be enforced in any amount.
- AIt remains enforceable until Bharat marries someone else
- BIt is voidable at Anil's option
- CIt becomes void because the event has become impossibleCorrect
- DIt is enforceable for a reduced sum
Explanation
Section 32 states that if the event becomes impossible, the contingent contract becomes void, as in the illustration where C dies without marrying B. It is not voidable and no part of the sum can be claimed.
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