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CS Professional · Drafting, Pleadings and Appearances · Drafting of Commercial Contracts

Bhatia agrees to pay Menon Rs 50,000 if Menon marries Sunita. The contract is made after Sunita has died, which neither party knew. What is the effect?

The agreement is void. Contingent agreements dependent on an impossible event are void whether or not the parties knew of the impossibility when making them. Since Sunita had already died, the marriage was impossible and good faith is irrelevant.

  1. AValid, since both parties acted in good faith
  2. BVoidable at Menon's option
  3. CValid but only for a reduced sum
  4. DVoid, whether or not the parties knew of the impossibilityCorrect

Explanation

Contingent agreements to do or not to do anything if an impossible event happens are void, whether the impossibility is known to the parties or not at the time of making. Marriage to a dead person is impossible. The parties' ignorance does not save the agreement.

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