CS Professional · Drafting, Pleadings and Appearances · Commercial Contract Management
Vikram agrees to pay Neha Rs 3,00,000 if Neha marries Rohit. Subsequently Rohit marries Sunita. Rohit's wife may die and he might later marry Neha. Vikram refuses to pay and Neha argues the event remains possible. What is the position?
The contract becomes void. When a person's conduct is the event, it is deemed impossible once he does something that rules out the act except under further contingencies. Rohit's marriage to Sunita makes his marriage to Neha impossible, so the contingent contract becomes void.
- AThe event is still possible, so the contract stays alive until Rohit dies
- BThe marriage of Neha to Rohit must now be considered impossible, so the contract becomes voidCorrect
- CThe contract becomes enforceable because Rohit acted
- DThe contract is voidable at Vikram's option only
Explanation
Where the event is a person's future conduct at an unspecified time, it is considered impossible when that person does something making it impossible to act so within any definite time, or otherwise than under further contingencies. Rohit's marriage to Sunita does this, even though later events could theoretically change it. Since the event is impossible, the contract becomes void.
Did you get it right without looking?
One question tells you little. A timed set on Commercial Contract Management shows your real accuracy, how long you take and where you lose marks.
More Commercial Contract Management questions
- Ravi owes Sheela Rs. 50,000. Sheela owes Tarun Rs. 50,000. Sheela instructs Ravi to credit Tarun with Rs. 50,000 in his books, but Tarun nev…
- Under an indemnity from Bharat Steels, Deepak is sued by a vendor. Deepak defends the suit against Bharat Steels' express orders not to cont…
- Bharat Steel contracted to have Anil Fabricators fabricate structures for Rs. 9,00,000. Anil was ready and willing, but Bharat Steel refused…
- Under a supply agreement, Kaveri Pharma Ltd. promises to compensate Distributor Arun Traders for any loss that Arun suffers if a third party…
- Rohan owes Sameer ₹10,000 under a contract. They agree that Rohan will instead give Sameer a mortgage of his estate for ₹5,000 in place of t…
- Nirmal Pharma promises to compensate Oberoi Distributors for any loss caused by claims a third party, Pinnacle Labs, may make against Oberoi…