CMA Foundation · Fundamentals of Business Laws and Business Communication · Contingent Contracts
Sunil promises to pay Tara Rs. 30,000 if Vikram does not marry Meena. Vikram has no fixed time for marrying, and Meena marries Rahul. Which statement is correct?
The contract can be enforced. Meena's marriage to Rahul makes Vikram's marriage to her impossible under Section 34, and Section 33 permits enforcement of a contract contingent on an event not happening once that event becomes impossible.
- AThe contract is void because the event is impossible
- BSunil may refuse payment until Rahul dies
- CThe contract may be enforced, since Vikram's marrying Meena is now considered impossible under Section 34 and Section 33 allows enforcement when the event becomes impossibleCorrect
- DThe contract is enforceable only after a court fixes a time
Explanation
Section 34 treats Vikram's marriage to Meena as impossible once she marries Rahul. Section 33 says a contract contingent on an event not happening can be enforced when that event becomes impossible. So Tara can enforce it; calling it void confuses it with Section 32.
Did you get it right without looking?
One question tells you little. A timed set on Contingent Contracts shows your real accuracy, how long you take and where you lose marks.
More Contingent Contracts questions
- Kiran agrees to pay Lakshmi a sum of money if a certain ship does not return. The ship is later sunk. When can the contract be enforced?
- Mehta Traders promises to pay Rs. 50,000 to Gupta Exports if a particular cargo ship docks at Mumbai port within six months. Two months late…
- Sunita promises to pay Dev Rs. 30,000 if Dev's goods are cleared by customs within 60 days. On day 60 the goods have not been cleared. Which…
- Mehta promises to pay Iyer Rs. 50,000 if Iyer's warehouse in Surat is destroyed by fire. Which statement is correct?
- Anita agrees to pay Bimal Rs. 20,000 when Bimal marries Chitra. Chitra marries Deepak. Under Sections 32 and 34 together, what is the effect…
- Ravi Traders agrees to pay Mehta Associates ₹50,000 if two straight lines enclose a space. Neither party realised at the time that this was …