CMA Foundation · Fundamentals of Business Laws and Business Communication · Contingent Contracts
Which of the following is a contingent contract within the meaning of Section 31, to which Section 32 applies?
A contract to pay Rs. 10,000 if the promisee's house is burnt is contingent. Section 31 defines a contingent contract as one to do or not do something if an event collateral to the contract does or does not happen. The other options involve ordinary performance without any collateral uncertain event.
- AA contract to deliver 100 kg of rice on 1 March for a fixed price
- BA contract to pay Rs. 10,000 if the promisee's house is burntCorrect
- CA contract to pay for goods already supplied
- DA contract where each party promises to perform on the same day
Explanation
Section 31 defines a contingent contract as one to do or not do something if an event collateral to the contract does or does not happen. Payment if a house is burnt depends on such an event. The other options depend on no collateral uncertain event.
Did you get it right without looking?
One question tells you little. A timed set on Contingent Contracts shows your real accuracy, how long you take and where you lose marks.
More Contingent Contracts questions
- Which of the following best describes the effect of Section 32 on a contract contingent on an uncertain event happening?
- Anil agrees to buy Bhavna's horse if Anil survives Chandan. Which statement is correct under the Act?
- Rohit promises to pay Sanjay Rs. 50,000 when Sanjay marries Tina. Tina dies without having married Sanjay. What is the legal position under …
- Meera agrees to buy Karan's scooter for Rs. 40,000 if Neha, to whom the scooter was first offered, refuses to buy it. Which statement is cor…
- Under the Indian Contract Act, 1872, a contingent contract to do something if an uncertain future event does not happen (with no time limit …
- Under the Indian Contract Act, 1872, a contingent contract to do something if an uncertain event does not happen is enforceable only when: