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Gopal Shipping promises to pay Rs. 5,00,000 to Harish Exports if the vessel MV Sagar does not return to Chennai port. News arrives that MV Sagar has sunk in a storm. Under Section 33 of the Indian Contract Act, 1872, when can Harish enforce the promise?

Harish can enforce the promise when the sinking makes the vessel's return impossible. Section 33 allows enforcement of a contract contingent on an event not happening once the happening of that event becomes impossible, and not before. No waiting period or insurance condition is required.

  1. AOnly after one year from the date of the contract
  2. BWhen the sinking makes the return of the vessel impossibleCorrect
  3. COnly if the vessel had been insured
  4. DNever, because the event did not happen

Explanation

Section 33 says a contract contingent on an event not happening can be enforced when the happening of that event becomes impossible, and not before. The sinking makes the return impossible, so enforcement is available at that point. No fixed period is stated, so a one-year wait does not apply.

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