Chhattisgarh Pre 2016 Re

Contingent agreements to do or not to do anything, if an impossible event happens

Verified Answer
A. are void if the impossibility of the event is known to the parties at the time when it is made
B. are void if the impossibility of the event is not known to the parties to agreement at the time when it is made
C. are void, whether the impossibility of the event is known or not to the parties to the agreement at the time when it is made
D. are voidable at the option of the parties

Explanation:

Section 36 of the Indian Contract Act, 1872 states that contingent agreements 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 the parties to the agreement at the time when it is made.