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

Arun agrees to pay Bhavna Rs. 20,000 if Bhavna marries Chitra. Chitra marries Deepak. Although Deepak may die and Chitra may later marry Bhavna, what is the position under the provisions on contingent contracts?

The marriage of Bhavna to Chitra is treated as impossible once Chitra marries Deepak, so the contract becomes void. Section 34 deems the event impossible when a person's act rules it out except under further contingencies, and Section 32 makes the contract void when the event becomes impossible.

  1. AThe marriage of Bhavna to Chitra is considered impossible, so the contract becomes voidCorrect
  2. BThe contract stays enforceable until Deepak dies
  3. CThe contract is suspended and revives if Chitra is widowed
  4. DThe contract is voidable by Bhavna alone

Explanation

Section 34 says that where the event is a person's future conduct, it is considered impossible when that person does something making the act impossible within any definite time or otherwise than under further contingencies. Chitra's marriage to Deepak does so, so under Section 32 the contract becomes void. Possible later widowhood is a further contingency and is disregarded.

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