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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 becomes void. III. A contingent contract can be enforced even before the uncertain event happens, if both parties are willing. Which is correct?

Only statements I and II are correct. Section 32 provides that a contingent contract cannot be enforced until the uncertain event has happened and becomes void if the event becomes impossible. Enforcement before the event, merely because the parties are willing, is not permitted.

  1. AI and II onlyCorrect
  2. BII and III only
  3. CI and III only
  4. DI, II and III

Explanation

Section 32 states both I and II: no enforcement until the event has happened, and the contract becomes void if the event becomes impossible. Statement III contradicts Section 32, because willingness of the parties does not allow enforcement before the event happens.

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