CMA Foundation · Fundamentals of Business Laws and Business Communication · Contingent Contracts
Anita agrees to pay Bimal Rs. 20,000 when Bimal marries Chitra. Chitra marries Deepak. Under Sections 32 and 34 together, what is the effect on the contract?
The contract becomes void. Chitra's marriage to Deepak makes Bimal's marriage to her impossible under Section 34, and under Section 32 a contract contingent on an event happening becomes void when that event becomes impossible.
- AIt stays valid until Deepak dies
- BIt becomes void because the event is considered impossibleCorrect
- CIt becomes enforceable because Chitra has acted
- DIt is enforceable after one year
Explanation
Section 34 treats Bimal's marriage to Chitra as impossible once she marries Deepak. Section 32 states that if the event becomes impossible, contracts contingent on its happening become void. Waiting for Deepak's death is not required.
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