CMA Foundation · Fundamentals of Business Laws and Business Communication · Contingent Contracts
Which of the following contingent agreements falls within Section 36 of the Indian Contract Act, 1872?
The agreement to pay if two straight lines enclose a space falls under Section 36. The event is impossible from the start, so the agreement is void. The other situations involve possible uncertain events or later impossibility governed by other sections.
- AA agrees to pay B ₹1,000 if a certain ship does not return, and the ship is later sunk
- BA agrees to buy B's horse if A survives C
- CA agrees to pay B ₹1,000 if two straight lines should enclose a spaceCorrect
- DA agrees to pay B a sum of money when B marries C, and C later dies unmarried to B
Explanation
Only the agreement dependent on two straight lines enclosing a space rests on an impossible event at the time it is made, which is the case Section 36 makes void. The ship and horse cases involve uncertain but possible events. In the last option, the contract was valid initially and becomes void later under Section 32 when the event becomes impossible.
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