A contingent agreement based on an impossible event under Section 36 is ______

All India Bar Examination (AIBE) 4-IV Previous Year Question Papers with Answers

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61.

A contingent agreement based on an impossible event under Section 36 is ______

A: Void

B: Void till impossible is known

C: Void when even becomes impossible

D: Voidable

The answer is: A

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Explanation

The correct option is A: Void.

According to Section 36 of the Indian Contract Act, 1872, a contingent agreement to do or not to do anything, if an impossible event happens, is void, whether the impossibility of the event is known or not to the parties to the agreement at the time when it is made.

For example, if A agrees to pay B Rs. 10,000 if B can fly in the air without any support, this agreement is void because flying in the air without any support is an impossible event. It does not matter whether A and B know or do not know that flying in the air without any support is impossible. The agreement is void from the beginning and cannot be enforced by either party.