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CS Professional · Drafting, Pleadings and Appearances · Drafting of Commercial Contracts

Verma promises to pay Nair Rs 2,00,000 if a certain cargo ship does not return to Kochi. The ship is sunk at sea. When can Nair enforce the promise?

Nair can enforce it when the ship sinks. A contract contingent on an event not happening is enforceable once the happening of that event becomes impossible, and not before. Sinking makes the ship's return impossible.

  1. AOnly after one year from the date of contract
  2. BWhen the ship's return becomes impossible, that is, when it sinksCorrect
  3. CNever, since the event did not happen
  4. DBefore the ship sinks, since the promise is absolute

Explanation

Contingent contracts to do something if an uncertain future event does not happen can be enforced when the happening of that event becomes impossible, and not before. The sinking makes the return impossible, so enforcement is available then. No time limit was fixed, so waiting a year is not required.

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