In continuation with previous part let’s now discuss about contact when the performance depends upon non-happening of an event, Section 33 of the Indian Contract Act 1872 provides that “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”. For example, Illustration X agrees to pay Y a certain sum of money if a certain ship does not return. Suppose that ship got sunk. Than the contract, contract can be enforced as soon as the ship sinks. It is important to understand that in this contract the parties have to wait till occurence of certain events becomes impossible.
Section 34 of the Indian contact Act 1872 deals with events when event on which contract is contingent to be deemed impossible, if it is the future conduct of a living person . The section states that “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 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.” For example X agrees to pay Y a sum of money if Y marries to Z, but instead Y marries to R. The marriage of Y to Z must now be considered impossible as per law although it is completely possible that R may die and that Y may afterwards marry Z.
When the event for which the parties are waiting to happen is linked with the future conduct of a person, that means to say, where the contract is enforceable if a certain person is to act in a certain way, the event shall be considered to have become impossible if that person does something which makes it impossible that he should act in the a ctionin any definite time or without further contingencies being fulfilled.
Section 35 provided for contracts that become void, which are contingent on happen
ing of specified event within fixed time. It states that 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.
It is 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.For example X promises to pay Y 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.
Aishwarya Says:
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