CMA Foundation · Fundamentals of Business Laws and Business Communication · Contingent Contracts
Under Section 32 of the Indian Contract Act, 1872, a contingent contract to do something if an uncertain future event happens can be enforced by law at which point?
A contingent contract dependent on an uncertain event happening cannot be enforced by law until that event has actually happened. Once the event occurs, the contract becomes enforceable. Before that, neither party can sue on it, because the obligation depends on the collateral event.
- AImmediately when the contract is made
- BUnless and until the event has happened, it cannot be enforced; it becomes enforceable once the event happensCorrect
- COnly after one party has paid advance money
- DAt any time chosen by the promisee
Explanation
Section 32 says such contracts cannot be enforced unless and until the event has happened. Enforcement at the time of making ignores the contingency, so it is wrong. Advance payment or the promisee's choice is not the test in the section.
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