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

Match the situation with its legal result. P. Pay if ship returns within a year; ship burnt in the year Q. Pay if ship returns within a year; ship returns in the year R. Pay if ship does not return within a year; year expires, ship not returned S. Pay if ship does not return; ship is sunk Results: 1. Enforceable (Section 35) 2. Void (Section 35) 3. Enforceable when the ship sinks (Section 33)

The correct matching is P-2, Q-1, R-1, S-3. A returns-within-year contract is void if the ship is burnt and enforceable if it returns. A does-not-return contract is enforceable when the year expires without return, and when the ship sinks under Section 33.

  1. AP-2, Q-1, R-1, S-3Correct
  2. BP-1, Q-2, R-1, S-3
  3. CP-2, Q-1, R-3, S-1
  4. DP-2, Q-3, R-1, S-1

Explanation

P becomes void as the event became impossible within the time. Q may be enforced as the event happened in time. R may be enforced since time expired and the event did not happen. S falls under Section 33, which allows enforcement when the event becomes impossible, here when the ship sinks.

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