When the object with which the contract was formed is fulfilled, the liability of parties under the contract comes to an end. The contract is then said to be discharged. But But performance is not the only way in which a contract is discharged. A contract may be discharged in following ways.
(2) Impossibility of Performance
PERFORMANCE OF CONTINGENT CONTRACTS
Section 31 defines the expression contingent contracts as “a contract to do or not to do something, if some event, collateral to such contract, does or does not happen.”
For example X contracts to pay Y Rs 100 if X’s car is stolen. This contract that is baised on happening of certain events is known as a contingent contract.
It is a sort of a conditional contract and the condition much be uncertain in nature. A contract, for example, to pay a sum of money on the expiry of a time or on the death of a person is not a contingent contract because these events are certain in their nature. It is important to remember that whenever the condition of contract are uncertain in nature, then only the contract can be regarded as contingent. A contract for example, to pay a sum of money on the destruction or theft of a vehicle, is a contingent contract, for that contingency may happen or may not happen.
Section 32 of the Indian Contract Act 1872 deals with the contract where enforcement depends upon happening of an event it states that “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.” For better understanding lets take about a situation where X makes a contract with Y to buy a vehicle at a specified price, if Z, to whom the vehicle
has been originally offered, refuses to buy it. So here the contract between X and Y can not be enforce unless and until Z refuses to buy the horse. Suppose if Z accept the offer to buy horse than the contract between X and Y will become void.
This section lays down two basic principles they are
• Firstly , a contract to do an act on baises of happening of a future uncertain condition cannot be enforced unless and until that particular event happens.
• Second, if the happening of that event has
become impossible, then the contract becomes void.
It is important to understand that the contract would also not come in force where the event does not happen in the way contemplated by the contract. For example in V.P. Desav Union of India, AIR 1958 MP 297 Wherein a car was insured against loss in transit, the car was damaged without being put in the course of transit, the insurer was held to be not liable.
Further details will be discussed in next part.
I have always been against Glorifying Over Work and therefore, in the year 2021, I have decided to launch this campaign “Balancing Life”and talk about this wrong practice, that we have been following since last few years. I will be talking to and interviewing around 1 lakh people in the coming 2021 and publish their interview regarding their opinion on glamourising Over Work.
If you are interested in participating in the same, do let me know.
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