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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 event does not happen is enforceable only when:

Such a contract is enforceable only when the occurrence of the event has become impossible. Section 33 says enforcement can happen at that point and not before, so mere passage of time or continuing uncertainty is not enough.

  1. Athe parties have agreed on consideration
  2. Bthe event has been pending for a reasonable time
  3. Cthe event is still uncertain and may not occur
  4. Dthe occurrence of the event has become impossibleCorrect

Explanation

Section 33 allows enforcement when the happening of the event becomes impossible, and not before. While the event is still uncertain or merely pending, enforcement is not allowed, so options 2 and 3 are wrong.

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