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CMA Foundation · Fundamentals of Business Laws and Business Communication · Contingent Contracts

Anil promises to pay Bhaskar ₹1,000 if Bhaskar marries Anil's daughter Chitra. Unknown to both, Chitra had died before the agreement was made. Which statement is correct?

The agreement is void. Because Chitra was already dead, the marriage on which payment depended was impossible when the agreement was made, and Section 36 voids such contingent agreements even if the parties did not know of the impossibility.

  1. AThe agreement is valid and enforceable once Bhaskar proves he was willing to marry Chitra
  2. BThe agreement is void because the event was impossible when the agreement was made, though unknown to the partiesCorrect
  3. CThe agreement is voidable because both parties made a mistake
  4. DThe agreement is valid but its performance is suspended until Bhaskar remarries

Explanation

Chitra was already dead, so the marriage was impossible at the time of agreement. Section 36 makes the agreement void regardless of the parties' knowledge. Section 36's illustration (b) treats this fact pattern as void, so it is not merely voidable.

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