CMA Foundation · Fundamentals of Business Laws and Business Communication · Contingent Contracts
Which statement correctly distinguishes Section 33 from Section 32 of the Indian Contract Act, 1872?
Under Section 32 a contract contingent on an event happening cannot be enforced until that event has happened. Under Section 33 a contract contingent on an event not happening is enforceable when the event becomes impossible. Neither is enforceable earlier.
- ASection 33 deals with events that have already occurred, Section 32 with future events
- BSection 33 contracts are always void, Section 32 contracts are always enforceable
- CSection 33 contracts are enforceable when the event becomes impossible, Section 32 contracts only when the event has happenedCorrect
- DBoth sections allow enforcement before the event is resolved
Explanation
Section 32 concerns contracts contingent on an event happening, enforceable only after it has happened. Section 33 concerns contracts contingent on an event not happening, enforceable when the event becomes impossible. Neither allows enforcement before the uncertainty is resolved.
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