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CS Professional · Drafting, Pleadings and Appearances · Commercial Contract Management

Sunita Exports promises to pay Dev Rs 2,00,000 if a specified cargo ship returns to Mumbai within one year. Four months later the ship is burnt and destroyed. What is the position of the contract?

The contract becomes void. Under Section 35, a contract contingent on an event happening within a fixed time is void if the event becomes impossible before that time. The burning of the ship makes its return impossible, so the contract is void at once.

  1. AIt remains pending until the year ends
  2. BIt can be enforced immediately against Sunita Exports
  3. CIt is enforceable only after the year expires
  4. DIt becomes void because the event became impossible before the fixed timeCorrect

Explanation

Section 35 provides that a contingent contract dependent on an event happening within a fixed time becomes void if, before the time fixed, the event becomes impossible. Destruction of the ship makes its return impossible. Waiting for the year to end is wrong because voidness arises as soon as the event becomes impossible.

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