CSEET · Business Laws and Management · Elements of Law of Contracts
Meera agrees to buy Karan's scooter for Rs. 40,000 if her cousin Dev, to whom the scooter was first offered, refuses to buy it. When can the contract be enforced?
The contract can be enforced only when Dev refuses to buy the scooter. Under Section 32, a contract contingent on an uncertain future event happening cannot be enforced by law unless and until that event has happened, so enforcement waits for Dev's refusal.
- AImmediately, as an agreement has been made
- BOnly when Dev refuses to buy the scooterCorrect
- COnly when Meera pays the price in advance
- DWhen Karan decides to sell to someone else
Explanation
Under Section 32, a contract contingent on an uncertain future event happening cannot be enforced unless and until that event has happened. The event here is Dev's refusal. Immediate enforcement is wrong because the event has not yet occurred.
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