CS Professional · Drafting, Pleadings and Appearances · Drafting of Commercial Contracts
Rao agrees in writing to buy Singh's horse if Rao survives Iyer. Singh demands payment while all three are alive. How should the draftsman advise on enforceability?
It can be enforced only after Iyer dies in Rao's lifetime. A contract contingent on an uncertain event happening cannot be enforced until that event has happened, and it becomes void only if the event becomes impossible.
- AThe contract is void from the start
- BIt can be enforced immediately because it is signed
- CIt can be enforced only after Iyer dies during Rao's lifetimeCorrect
- DIt can be enforced only after Rao dies
Explanation
Contingent contracts dependent on an uncertain future event happening cannot be enforced by law unless and until that event has happened. The event is Iyer's death in Rao's lifetime. Until then enforcement is not possible, though the contract is not void.
Did you get it right without looking?
One question tells you little. A timed set on Drafting of Commercial Contracts shows your real accuracy, how long you take and where you lose marks.
More Drafting of Commercial Contracts questions
- Gopal Shipping promises to pay Rs. 5,00,000 to Harish Exports if the vessel MV Sagar does not return to Chennai port. News arrives that MV S…
- Meera Textiles Ltd appoints Rajan as its agent to sell cotton yarn. Rajan, acting within authority, sells yarn to Sundaram Traders, who know…
- Iyer, authorised agent of Sundaram Textiles, collected Rs 3 lakh due to Sundaram from debtor Gupta Garments. Iyer later absconded with the m…
- Bose Infra promises to pay Nair Consultants Rs 10 lakh if a particular merchant ship does not return within one year. In month eight, the sh…
- Kiran Textiles agrees to buy 500 bales of cotton from Ravi Traders at a fixed price, but only if a particular import consignment arriving at…
- Verma promises to pay Nair Rs 2,00,000 if a certain cargo ship does not return to Kochi. The ship is sunk at sea. When can Nair enforce the …