Skip to content

CSEET · Business Laws and Management · Elements of Law of Contracts

Karan promises to pay Dev ₹30,000 if Dev's neighbour Esha refuses to buy Dev's horse, which has been offered to her. Esha has not yet decided. What is the position?

The contract cannot be enforced unless and until Esha refuses to buy the horse. It is a contingent contract, and Section 32 says such a contract is enforceable only after the uncertain future event has happened, so Dev must wait for her refusal.

  1. AThe contract cannot be enforced unless and until Esha refuses to buy the horseCorrect
  2. BThe contract can be enforced immediately
  3. CThe contract is void from the start because the event is uncertain
  4. DThe contract is enforceable only if Esha buys the horse

Explanation

This is a contingent contract under Section 32, which says it cannot be enforced unless and until the uncertain event, here Esha's refusal, has happened. Uncertainty does not make it void. Esha buying the horse would make the event impossible and the contract void, not enforceable.

Did you get it right without looking?

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

Practise Elements of Law of ContractsFree diagnostic mock

More Elements of Law of Contracts questions