CMA Foundation · Fundamentals of Business Laws and Business Communication · Contingent Contracts
Kiran agrees to pay Lata ₹20,000 if Lata walks to the sun and returns within a day. Which conclusion is correct under the Indian Contract Act, 1872?
The agreement is void under Section 36. Walking to the sun and back within a day is an impossible event, and contingent agreements that depend on an impossible event are void, so Kiran has no enforceable obligation to pay Lata.
- AKiran must pay once the day has passed without the event
- BKiran must pay half the sum
- CThe agreement is void under Section 36 as the event is impossibleCorrect
- DThe agreement is valid but unenforceable until Lata attempts it
Explanation
Walking to the sun and back is an impossible event. Section 36 declares a contingent agreement dependent on an impossible event to be void. The first option wrongly treats this as an event-not-happening contract; there is no enforceable obligation at all.
Did you get it right without looking?
One question tells you little. A timed set on Contingent Contracts shows your real accuracy, how long you take and where you lose marks.
More Contingent Contracts questions
- Kiran promises to pay Dev Rs. 20,000 if Dev marries Esha. Before any marriage, Esha marries Farhan. Under the Act, what is the position?
- Meera agrees to buy Rohan's machine at Rs 2,00,000 if Sunil, to whom the machine was first offered, refuses to buy it. Sunil has not yet giv…
- Meera promises to pay Rohan Rs. 50,000 if a particular cargo vessel reaches Kochi port within six months. Under Section 35 of the Indian Con…
- Which pair correctly contrasts the two rules in Section 35 of the Indian Contract Act, 1872?
- Mehta Traders promises to pay Rs. 50,000 to Gupta Exports if a particular cargo ship docks at Mumbai port within six months. Two months late…
- Sunita promises to pay Dev Rs. 30,000 if Dev's goods are cleared by customs within 60 days. On day 60 the goods have not been cleared. Which…