Skip to content

CSEET · Business Laws and Management · Elements of Law of Contracts

Arjun promises to pay Bina Rs. 20,000 if a certain ship does not return to Mumbai within one year. Which of the following statements is correct?

The contract may be enforced if the ship does not return within the year, or if it is burnt within the year. Section 35 allows enforcement once the time expires without the event, or earlier when it becomes certain the event will not happen.

  1. AThe contract can be enforced only after exactly one year has passed, even if the ship is burnt earlier
  2. BThe contract is void if the ship does not return within the year
  3. CThe contract may be enforced if the ship does not return within the year, or is burnt within the yearCorrect
  4. DThe contract can never be enforced because the event is negative

Explanation

Section 35 says such a contract may be enforced when the time fixed has expired and the event has not happened, or before expiry if it becomes certain the event will not happen. Illustration (b) says the contract may be enforced if the ship does not return or is burnt within the year. The first option wrongly insists on waiting for the full year.

Did you get it right without looking?

One question tells you little. A timed set on Elements of Law of Contracts shows your real accuracy, how long you take and where you lose marks.

Practise Elements of Law of ContractsFree diagnostic mock

More Elements of Law of Contracts questions