Skip to content

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

Iyer Exports agrees to pay Desai Shipping Rs 6 lakh if a certain cargo vessel does not return to Kochi port. The vessel is later reported sunk in a storm. Desai Shipping demands payment. Applying Section 33, when may the contract be enforced?

The contract can be enforced when the vessel sank. Under Section 33, a contract contingent on an event not happening is enforceable once the happening of that event becomes impossible, and not before. The sinking made the return impossible, so payment can be claimed.

  1. AOnly after the vessel's one-year voyage schedule ends
  2. BOnly if Iyer Exports consents in writing
  3. CWhen the vessel's return became impossible, that is, on its sinkingCorrect
  4. DNever, because the event is a negative event

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 time is stated, so option a has no basis.

Did you get it right without looking?

One question tells you little. A timed set on Drafting of Commercial Contracts shows your real accuracy, how long you take and where you lose marks.

Practise Drafting of Commercial ContractsFree diagnostic mock

More Drafting of Commercial Contracts questions