CMA Foundation · Fundamentals of Business Laws and Business Communication · Contingent Contracts
Kiran agrees to pay Dev Rs 1,00,000 if Kiran survives Esha. Esha dies during Kiran's lifetime. Which statement is correct?
The contract can now be enforced because the contingent event, Esha's death in Kiran's lifetime, has happened. Section 32 makes such a contract unenforceable only until the event occurs, and it is not void because the event was uncertain when the contract was made.
- AThe contract is void because survival is uncertain
- BThe contract can now be enforced because the event has happenedCorrect
- CThe contract is enforceable only after Kiran's death
- DThe contract could always be enforced since both parties are alive
Explanation
Following Section 32, the contract cannot be enforced unless and until Esha dies in Kiran's lifetime. Once Esha dies with Kiran alive, the event has happened and the contract becomes enforceable. Uncertainty at the start does not make it void.
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