CHAPTER 3. OF CONTINGENT CONTRACTS



31.
"Contingent contract" defined.
31."Contingent contract" defined.-A " contingent contract " is a
contract to do or not to do something, if some event, collateral to
such contract, does or does not happen.
Illustration
A contracts to pay B Rs. 10,000 if B's house is burnt. This is a
contingent contract.
32.
Enforcement of contracts contingent on an event happening.
32.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.
Illustrations
(a) A makes a contract with B to buy B's horse if A survives C.
This contract cannot be enforced by law unless and until C dies in A's
lifetime.
(b) A makes a contract with B to sell a horse to B at a
specified price, if C, to whom the horse has been offered, refuses to
buy him. The contract cannot be enforced by law unless and until C
refuses to buy the horse.
(c) A contracts to pay B a sum of money when B marries C. C dies
without being married to B. The contract becomes void.
33.
Enforcement of contracts contingent on an event not happening.
33. Enforcement of contracts contingent on an event not happening.-
Contingent contracts to do or not to do anything if an uncertain
future event does not happen can be enforced when the happening of
that event becomes impossible, and not before.
Illustration
A agrees to pay B a sum of money if a certain ship does not
return. The ship is sunk. The contract can be enforced when the
ship sinks.
34.
When event on which contract is contingent to be deemed impossible, if
it is the future conduct of a living person.
34.When event on which contract is contingent to be deemed
impossible, if it is the future conduct of a living person.-If the
future event on which a contract is contingent is the way in which a
person will act at an unspecified time,the event shall
---------------------------------------------------------------------
1 Cf. the Gaming Act (8 and 9 Vict., c. 109),s. 18,
---------------------------------------------------------------------
33
be considered to become impossible when such person does anything
which renders it impossible that he should so act within any definite
time, or otherwise than under further contingencies.
Illustration
A agrees to pay B a sum of money if B marries C. C marries D. The
marriage of B to C must now be considered impossible, although it is
possible that D may die and that C may afterwards marry B.
35.
When contracts become void which are contingent on happening of
specified event within fixed time.
35.When contracts become void which are contingent on happening
of specified event within fixed time.-Contingent contracts to do or
not to do anything if a specified uncertain event happens within a
fixed time become void if, at the expiration of the time fixed, such
event has not happened, or if, before the time fixed, such event
becomes impossible.
When contracts may be enforced which are contingent on specified
event not happening within fixed time.-Contingent contracts to do or
not to do anything if a specified uncertain event does not happen
within a fixed time may be enforced by law when the time fixed has
expired and such event has not happened or, before the time fixed has
expired, if it becomes certain that such event will not happen.
Illustrations
(a) A promises to pay B a sum of money if a certain ship returns
within a year. The contract may be enforced if the ship returns
within the year, 'and becomes void if the ship is burnt within the
year.
(b) A promises to pay B a sum of money if a certain ship does
not return within a year. The contract may be enforced if the ship
does not return within the year, or is burnt within the year.
36.
Agreement contingent on impossible events void.
36.Agreement contingent on impossible events void.-Contingent
agreements to do or not to do anything, if an impossible event
happens, are void, whether the impossibility of the event is known or
not to the parties to the agreement at the time when it is made.
Illustrations
(a) A agrees to pay B 1,000 rupees if two straight lines should
enclose a space. The agreement is void.
(b) A agrees to pay B 1,000 rupees if B will marry A's daughter
C. C was dead at the time of the agreement. The agreement is void.


Comments