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CSEET · Business Laws and Management · Elements of Law of Contracts

Consider these statements about Section 35 of the Indian Contract Act, 1872. I. A contingent contract to do something if an uncertain event happens within a fixed time becomes void if the event has not happened when the time expires. II. A contingent contract to do something if an uncertain event does not happen within a fixed time may be enforced when the time has expired and the event has not happened. III. A contingent contract that an event will happen within a fixed time is always enforceable before the time expires. Which statements are correct?

Only statements I and II are correct. Section 35 makes a happening-within-time contract void if the event has not occurred at expiry, and allows enforcement of a not-happening contract once time expires without the event. Statement III is wrong because enforcement needs the event to have happened.

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

Explanation

Statements I and II reproduce the two limbs of Section 35. Statement III is wrong: under Section 32 such a contract cannot be enforced unless and until the event has happened, so it is not enforceable merely because time remains.

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