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CA Foundation · Business Laws · The Indian Contract Act, 1872

Ganesh agrees to sell his plot to Hari for Rs 20 lakh if Hari marries Isha, a woman Hari has been engaged to. Before the wedding, Hari marries another woman, Jaya. Ganesh then sells the plot to a third party. Hari sues. What is the position?

Ganesh is not liable. The contract depends on Hari marrying Isha, which is a contingent event. When Hari marries Jaya, he does something that makes his marriage to Isha impossible, so the contingent contract becomes void and Hari cannot enforce it against Ganesh.

  1. AGanesh is liable because he sold the plot before the wedding date
  2. BGanesh is liable because the contract was absolute
  3. CGanesh is not liable because Hari's marriage to Jaya makes the marriage to Isha impossible, so the contract can no longer be enforcedCorrect
  4. DGanesh is liable only for Rs 10 lakh

Explanation

If a contingent contract depends on a person doing something at an unspecified time, it becomes void when that person does something making the act impossible. Hari's marriage to Jaya makes his marriage to Isha impossible. So the contract cannot be enforced against Ganesh.

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