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CS Professional · Drafting, Pleadings and Appearances · Commercial Contract Management

Harsh promises to pay Isha Rs 3,00,000 if a particular consignment does not arrive at Chennai port within six months. Two months later it is certain that the consignment will never arrive. When may Isha enforce the promise?

Isha can enforce it as soon as it becomes certain that the consignment will not arrive. Under Section 35, a contract contingent on an event not happening within a fixed time is enforceable once the time expires or earlier when non-occurrence becomes certain.

  1. AOnly when the six months have fully expired
  2. BNever, as such a contract is void
  3. COnly if Harsh agrees afresh to pay
  4. DAs soon as it becomes certain, before the time expires, that the event will not happenCorrect

Explanation

Section 35 allows a contract contingent on an event not happening within a fixed time to be enforced when the time has expired without the event, or earlier if it becomes certain the event will not happen. Certainty arose at two months. Waiting for six months is the key wrong option.

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