CMA Foundation · Fundamentals of Business Laws and Business Communication · Contingent Contracts
Under the Indian Contract Act, 1872, a contingent contract to do something if an uncertain future event does not happen (with no time limit fixed) can be enforced when:
A contingent contract that depends on an uncertain event not happening can be enforced when the happening of that event becomes impossible, and not before. Until that point it remains unenforceable, as Section 33 provides.
- Athe contract is signed by both parties
- Bthe happening of that event becomes impossible, and not beforeCorrect
- Cthe event has actually happened
- Deither party demands performance
Explanation
Section 33 says such contracts can be enforced when the happening of the event becomes impossible, and not before. Option 3 describes Section 32 contracts, which depend on an event happening, so it is wrong here.
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