Question

A agrees to pay Rs. $1,000$ to B if a certain ship returns within a year. However, the ship sinks within the year. In this case, the contract becomes ______________.

• A. valid
• B. void
• C. voidable
• D. illegal

Answer 1

Answer: (B)

void

Section 32 of the Indian Contract Act, 1872 states that a contingent contract (depending on happening or not happening of an event) becomes enforceable only when the uncertain event has occurred. Similarly, Section 33 states that the contract is enforceable also when the happening of the event becomes impossible. However, in the present instance, the contract was based on happening of an event, which did not happen.