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

Desai promises to pay Joshi Rs 1,00,000 if a specified ship returns within one year. Six months later, the ship is burnt. Joshi claims payment. What is the legal position?

The contract is void. A contract contingent on a specified event happening within a fixed time becomes void if the event becomes impossible before the time fixed. The ship's burning made its return impossible, so Joshi cannot claim payment.

  1. AThe contract is void because the event became impossible before the time fixedCorrect
  2. BThe contract is enforceable when the year ends
  3. CThe contract is enforceable immediately for half the sum
  4. DThe contract is voidable at Desai's option only

Explanation

Contingent contracts to do something if a specified uncertain event happens within a fixed time become void if, before the time fixed, the event becomes impossible, or if at expiry it has not happened. The burning makes the return impossible within the year. Waiting until year end is therefore irrelevant.

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