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CS Professional · Drafting, Pleadings and Appearances · Drafting of Agreements, Deeds and Documents

Kabir agrees to pay Anil Rs 50,000 if Anil marries Kabir's niece Tara. Unknown to both parties, Tara had died a week before the agreement was signed. Anil later claims the money. What is the position?

The agreement is void. Under Section 36 of the Indian Contract Act, a contingent agreement dependent on an impossible event is void, whether or not the parties knew of the impossibility at the time. Tara's prior death makes the marriage impossible, so Kabir's ignorance does not help Anil.

  1. AAnil can recover, because the parties did not know of Tara's death
  2. BAnil can recover half the sum on a quantum meruit basis
  3. CThe agreement is void, whether or not the parties knew of the impossibility when it was madeCorrect
  4. DThe agreement is voidable at Kabir's option

Explanation

Section 36 of the Indian Contract Act, 1872 makes contingent agreements void if the contingent event is impossible, whether or not the parties knew of the impossibility when making the agreement. The official illustration of the dead daughter is on point. The parties' ignorance is therefore irrelevant, and the agreement is void, not voidable.

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