Uncertain event
‘Contingent contract is to do or not to do anything, if an uncertain future event happens, it cannot be enforced by law unless and until that event has happened. ’
Illustration:
- ‘A’ makes a contract with ‘B’ to buy B’s car if A survives. Thus contract can’t be enforced until and unless ‘B’ dies in ‘A’ life time.
- A agrees to his car to B at a price of 2 lac. The car meet with an accident and completely damage before the execution of contract the contract is void.
Impossible event
Sec, 33 says “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”. In simple words if the event becomes impossible the contract becomes void.
Illustration: ‘A’ contract to pay ‘B’ a sum of money when ‘B’ marries ‘C’. ‘C’ dies without being married to ‘B’. The contract becomes void.
Performance dependent on non happening of event
Sec. 34 says “when performance depends on non happening of an event the contract shall not be performed unless the happening of that event becomes impossible”. In other words 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’s impossible that he should act within any definite time, or otherwise than under further contingencies.
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.
Performance dependent on particular individual
Sec. 5 (1) says “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 events become impossible”. In other words where performance depends on particular individual acting in a particular manner or on unspecified time. The event shall be considered to become impossible when such person does anything which renders it impossible that he should act so within any definite time or otherwise than under future contingencies.
Illustration: X promise to sell his car to Y at instalment basis if his new business earn profit. The contract may enforce only when the business of X earns profit otherwise the contract become void.
Event within fixed time
Sec. 35 (2) says “ contingent contract to do or not to do anything, if a specified uncertain event does not happen with 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”.
In other words where the contract contemplates the happening of an event within affixed time, the contract becomes void:
- If the event does not happen or it’s happening becomes impossible before the expiry of the date.
- When performance of the contract depends on non-happening of an event within a specified time, its performance cannot be demanded if the event does not happen or its happening becomes impossible before the expiry of that date.
Illustration: ‘X’ promise to pay ‘Y’ an amount of loan Rs. 50000, if his house is sale within one week. The contract may enforce if the house is sale out within one week otherwise the contract becomes void.
Dependence on impossible event
Sec. 36 says “contingent agreement 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 be parties to the agreement at the time when the contract is made”. In other words whether the performance of contract is depending on event which is already impossible, the contract is void whether or not the fact is known to the parties.
Illustration:
- “A” agrees to pay “B” Rs. 1000 if he constructs a bridge in the air.
- A” agrees to pay “B” Rs. 1000 if “B” will marry “A’s” daughter if daughter was dead at the time of the agreement. The agreement is void.
