New Enroll in our GIC Finance Online Course Here!

    Register

    Question

    What happens to a contingent contract if the uncertain

    future event it depends on does not occur as per the provisions of the Contract Act?
    A The contract becomes void as soon as the event is deemed impossible Correct Answer Incorrect Answer
    B The contract is enforceable by law immediately, regardless of the event's occurrence Correct Answer Incorrect Answer
    C The contract remains valid and must be enforced once the event occurs Correct Answer Incorrect Answer
    D The contract becomes void if the uncertain future event becomes impossible Correct Answer Incorrect Answer
    E The contract is automatically cancelled if the event does not happen Correct Answer Incorrect Answer

    Solution

    Section Enforcement of contracts contingent on an event happening—Contingent contracts to do or not to do anything if an uncertain future event happens cannot be enforced by law unless and until that event has happened. If the event becomes impossible, such contracts become void.

    Practice Next

    Relevant for Exams: