CSEET · Business Laws and Management · Elements of Law of Contracts
Consider the statements: (I) A contract to pay Rs. 10,000 if B's house is burnt is a contingent contract. (II) A contingent contract on an uncertain event happening can be enforced even before that event happens. Which is correct?
Only statement I is correct. Paying money if a house is burnt is a contingent contract under Section 31, but under Section 32 a contract contingent on an event happening cannot be enforced until that event has happened.
- ABoth I and II are correct
- BOnly I is correctCorrect
- COnly II is correct
- DNeither I nor II is correct
Explanation
Statement I matches the illustration to Section 31 on a house being burnt. Statement II is wrong because Section 32 says such contracts cannot be enforced unless and until the event has happened.
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