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

Match the situation with the legal result under Sections 32, 33 and 35. (1) Contract to pay if ship returns within a year; ship returns in 8 months (2) Contract to pay if ship returns within a year; year ends, ship has not returned (3) Contract to pay if ship does not return within a year; year ends, ship has not returned (4) Contract to pay if ship does not return (no time fixed); ship is sunk Results: (P) Void (Q) May be enforced when the time fixed has expired (R) May be enforced when the event happens within the time (S) Enforceable when the event becomes impossible

The correct matching is 1-R, 2-P, 3-Q, 4-S. A contract needing the event within a time is enforceable if it happens and void if it does not by expiry. One needing the event not to happen is enforceable on expiry, or when the event becomes impossible.

  1. A1-R, 2-P, 3-Q, 4-SCorrect
  2. B1-P, 2-R, 3-Q, 4-S
  3. C1-R, 2-Q, 3-P, 4-S
  4. D1-S, 2-P, 3-R, 4-Q

Explanation

(1) The event happened within time, so the contract may be enforced (R). (2) The event did not happen by expiry, so it is void (P). (3) The event did not happen within the time, so it may be enforced on expiry (Q). (4) With no time fixed, Section 33 allows enforcement when the event becomes impossible, as when the ship sinks (S).

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