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CMA Foundation · Fundamentals of Business Laws and Business Communication · Contingent Contracts

Under Section 35 of the Indian Contract Act, 1872, a contract is contingent on a specified uncertain event happening within a fixed time. What is the legal position if the fixed time expires and the event has not happened?

The contract becomes void. Under Section 35, where performance depends on a specified uncertain event happening within a fixed time, the contract is void if the time expires without the event happening. It cannot be enforced afterwards.

  1. AThe contract becomes voidCorrect
  2. BThe contract becomes voidable at the option of the promisor
  3. CThe contract can be enforced by the promisee
  4. DThe contract continues until the event happens

Explanation

Section 35 says a contingent contract to do or not to do something if a specified uncertain event happens within a fixed time becomes void if, when the time expires, the event has not happened. Enforcement is not possible, and the contract does not stay alive or become merely voidable.

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