CMA Foundation · Fundamentals of Business Laws and Business Communication · Discharge of Contracts
Under the Indian Contract Act, 1872, a contract is made by Ritu to pay Salim Rs 1,00,000 when Salim marries Tina. Tina dies without having married Salim. What is the effect on the contract?
The contract becomes void. A contingent contract depending on an uncertain future event is void once that event becomes impossible. Tina's death without marrying Salim makes the marriage impossible, so Ritu's promise to pay cannot be enforced.
- AIt remains enforceable against Ritu's estate
- BIt is voidable at Salim's option
- CIt is enforceable after one year of Tina's death
- DIt becomes void because the contingent event has become impossibleCorrect
Explanation
Section 32 says that a contingent contract cannot be enforced unless the event happens, and that if the event becomes impossible the contract becomes void. Illustration (c) is on these very facts: when the person dies without being married to the promisee, the contract becomes void. Hence the other options are wrong.
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