CSEET · Business Laws and Management · Elements of Law of Contracts
Consider these statements about contingent contracts. (I) A contingent contract to do something if an uncertain future event happens cannot be enforced unless and until that event has happened. (II) If the event becomes impossible, such a contract remains valid but is suspended. Which is correct?
Only statement I is correct. A contingent contract based on an uncertain future event happening cannot be enforced until that event occurs. If the event becomes impossible, the contract becomes void, not suspended, so statement II is wrong.
- ABoth I and II are correct
- BOnly II is correct
- COnly I is correctCorrect
- DNeither I nor II is correct
Explanation
Section 32 says contingent contracts dependent on an event happening cannot be enforced until the event happens, and if the event becomes impossible they become void. Statement II is wrong because the contract becomes void, not suspended.
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