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Question

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A agrees to pay BRs. 1,00,000 if .a certain ship does not return within a year. State: the legal position in each of the following alternative cases
Case (a) If the ship does not return within a year.
Case (b) If the ship returns within a year.
Case (c) If the ship is burnt within a year.

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Solution

Solution Section to which the given problem relates Section 35
Case (a)
Decision B can recover Rs. 1,00,000 from A
Reason: The contract can be enforced on the expiry of the fixed time since the ship has tot returned within a year.
Cases (b)
Decision: B cannot recover anything from A.
Reason: The Contract becomes void because the ship has returned within a year.
Cases (C)
Decision: B can recover Rs. 1,00,000 from A.
Reason: The Contract can be enforced since it has become certain that the ship will not return.

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