Question

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

• A. Void;
• B. Void till impossible is known;
• C. Void when event becomes impossible;
• D. Voidable;

Hint:

Section 36 declares that contingent contracts based on impossible events are void from inception, not from the point of impossibility being realized.

Answer 1

The Correct Option is A

Step 1: Understanding Contingent Contracts:
As per Section 31 of the Indian Contract Act, a contingent contract is one that depends on the occurrence or non-occurrence of a future uncertain event. Such contracts become enforceable only upon the happening of that event.
Step 2: Application of Section 36:
Section 36 specifies that contingent agreements based on an impossible event are void. This means that if the event on which the agreement depends cannot possibly happen, the contract is void ab initio (from the beginning).
Step 3: Example for Better Understanding:
If A promises to pay B ₹10,000 if B touches the moon by hand, the agreement is void because the event (touching the moon by hand) is inherently impossible.
Step 4: Analysis of Options:
- (A) Void – Correct, as per Section 36.
- (B) Void till impossible is known – Incorrect, because the impossibility exists from the outset.
- (C) Void when event becomes impossible – Applies to contingent contracts under Section 35, not Section 36.
- (D) Voidable – Incorrect, as no party has the discretion to enforce it.
Step 5: Final Conclusion:
Hence, the correct answer is (A) Void, because contingent agreements depending on impossible events are void from the beginning.