CMA Foundation · Fundamentals of Business Laws and Business Communication · Contingent Contracts
Rohit promises to pay Sanjay Rs. 50,000 when Sanjay marries Tina. Tina dies without having married Sanjay. What is the legal position under Section 32?
The contract becomes void. Under Section 32, when the uncertain event on which a contingent contract depends becomes impossible, the contract is void. Tina's death before the marriage makes the marriage impossible, so Rohit's promise to pay Sanjay can no longer be enforced.
- AThe contract is enforceable after a reasonable time has passed
- BThe contract becomes void because the event has become impossibleCorrect
- CThe contract remains valid until Sanjay marries someone else
- DThe contract is voidable at Rohit's option
Explanation
Section 32 states that if the event becomes impossible, the contract becomes void. Tina's death makes the marriage impossible, as in illustration (c). Waiting a reasonable time or an option for Rohit has no basis in the section.
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