CHAPTER III OF CONTINGENT CONTRACTS

Section 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.

Leading cases

Satyabrata Ghose v. Mugneeram Bangur and Co. (1953)The Court held that frustration in India is governed by Section 56 of the Contract Act, reading 'impossible' in a practical sense, and that wartime requisition of the land did not frustrate a contract to sell a plot.

Questions on this section

2 questions in 2 of our papers cite Section 32. Try these from the free papers:

1. Under Section 32 of the Indian Contract Act, 1872, a contingent contract to do something if an uncertain future event happens:

Practise questions on Contract Law