When contracts become void which are contingent on happening of specified event within fixed time. When contracts may be enforced, which are contingent on specified event not happening within fixed time
Act: Indian Contract Act, 1872; Act 9 of 1872; commencement 1 September 1872.
Source protocol: Complete central provision text is reproduced locally. Retained official India Code PDF extract. Official India Code and Gazette instruments prevail if any discrepancy is identified.
Full statutory text and Finin2min decode
Section 31 - “Contingent contract” defined
Local statutory-text source control: Retained official India Code PDF extract. Official India Code source prevails.
Current statutory text
31. “Contingent contract” defined.—A “contingent contract is a contract to do or not to do
something, if some event, collateral to such contract, does or does not happen.
Illustration
A contracts to pay B Rs. 10,000 if B’s house is burnt. This is a contingent contract.
Finin2min clause-by-clause decode
Clause
Statutory requirement
Finin2min meaning
Evidence/control
Main rule
31. “Contingent contract” defined.—A “contingent contract is a contract to do or not to do something, if some event, collateral to such contract, does or does not happen. Illustration A contracts to pay B Rs. 10,000 if B’s house is burnt. This is a contingent contract.
Test this main limb within the commercial rights and obligations framework. Operational focus: 31. “contingent contract” defined.—a “contingent contract is a contract to do or not to do something, if some.
Contract/deed, authority, chronology, notices, performance and payment records tied to this limb.
Finin2min implementation explanation
Section 31 is a commercial rights and obligations provision dealing with “contingent contract” defined. Identify the actor, trigger, cumulative or alternative conditions, provisos, exceptions and legal consequence before reaching a conclusion.
Implementation control: Translate the provision into an owner, trigger, approval, evidence, deadline, exception and remedy control, then test connected law and State variation.
Section-level practical application
Transaction test
Apply this provision to the event-date facts and record every satisfied, disputed or inapplicable limb.
Consequence and remedy
Identify how it changes validity, title, authority, liability, payment, rejection, recovery, registration, evidence or relief.
Section 32 - Enforcement of contracts contingent on an event happening
Local statutory-text source control: Retained official India Code PDF extract. Official India Code source prevails.
Current statutory text
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.
(c) A contracts to pay B a sum of money when B marries C. C dies without being married to B. The contract becomes void.
Finin2min clause-by-clause decode
Clause
Statutory requirement
Finin2min meaning
Evidence/control
Main rule
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
Test this main limb within the commercial rights and obligations framework. Operational focus: 32. enforcement of contracts contingent on an event happening.—contingent contracts to do or not to do anything if.
Contract/deed, authority, chronology, notices, performance and payment records tied to this limb.
(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.
Test this (a) within the commercial rights and obligations framework. Operational focus: a makes a contract with b to buy b’s horse if a survives c. this contract cannot be.
Contract/deed, authority, chronology, notices, performance and payment records tied to this limb.
(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.
Test this (b) within the commercial rights and obligations framework. Operational focus: a makes a contract with b to sell a horse to b at a specified price, if c.
Contract/deed, authority, chronology, notices, performance and payment records tied to this limb.
(c)
A contracts to pay B a sum of money when B marries C. C dies without being married to B. The contract becomes void.
Test this (c) within the commercial rights and obligations framework. Operational focus: a contracts to pay b a sum of money when b marries c. c dies without being married.
Contract/deed, authority, chronology, notices, performance and payment records tied to this limb.
Finin2min implementation explanation
Section 32 is a commercial rights and obligations provision dealing with enforcement of contracts contingent on an event happening. Identify the actor, trigger, cumulative or alternative conditions, provisos, exceptions and legal consequence before reaching a conclusion.
Implementation control: Translate the provision into an owner, trigger, approval, evidence, deadline, exception and remedy control, then test connected law and State variation.
Section-level practical application
Transaction test
Apply this provision to the event-date facts and record every satisfied, disputed or inapplicable limb.
Consequence and remedy
Identify how it changes validity, title, authority, liability, payment, rejection, recovery, registration, evidence or relief.
Section 33 - Enforcement of contracts contingent on an event not happening
Local statutory-text source control: Retained official India Code PDF extract. Official India Code source prevails.
Current statutory text
33. Enforcement of contracts contingent on an event not happening.—Contingent contracts to do
or not to do anything if an uncertain future event does not happen can be enforced when the happening of
that event becomes impossible, and not before.
Illustration
A agrees to pay B a sum of money if a certain ship does not return. The ship is sunk. The contract can be enforced when the
ship sinks.
Finin2min clause-by-clause decode
Clause
Statutory requirement
Finin2min meaning
Evidence/control
Main rule
33. Enforcement of contracts contingent on an event not happening.—Contingent contracts to do or not to do anything if an uncertain future event does not happen can be enforced when the happening of that event becomes impossible, and not before. Illustration A agrees to pay B a sum of money if a certain ship does not return. The ship is sunk. The contract can be enforced when the ship sinks.
Test this main limb within the commercial rights and obligations framework. Operational focus: 33. enforcement of contracts contingent on an event not happening.—contingent contracts to do or not to do anything.
Contract/deed, authority, chronology, notices, performance and payment records tied to this limb.
Finin2min implementation explanation
Section 33 is a commercial rights and obligations provision dealing with enforcement of contracts contingent on an event not happening. Identify the actor, trigger, cumulative or alternative conditions, provisos, exceptions and legal consequence before reaching a conclusion.
Implementation control: Translate the provision into an owner, trigger, approval, evidence, deadline, exception and remedy control, then test connected law and State variation.
Section-level practical application
Transaction test
Apply this provision to the event-date facts and record every satisfied, disputed or inapplicable limb.
Consequence and remedy
Identify how it changes validity, title, authority, liability, payment, rejection, recovery, registration, evidence or relief.
Section 34 - When event on which contract is contingent to be deemed impossible, if it is the future conduct of a living person
Local statutory-text source control: Retained official India Code PDF extract. Official India Code source prevails.
Current statutory text
34.When event on which contract is contingent to be deemed impossible, if it is the future
conduct of a living person.—If the future event on which a contract is contingent is the way in which a
person will act at an unspecified time, the event shall be considered to become impossible when such
person does anything which renders it impossible that he should so act within any definite time, or
otherwise than under further contingencies.
Illustration
A agrees to pay B a sum of money if B marries C. C marries D. The marriage of B to C must now be considered impossible,
although it is possible that D may die and that C may afterwards marry B.
Finin2min clause-by-clause decode
Clause
Statutory requirement
Finin2min meaning
Evidence/control
Main rule
34.When event on which contract is contingent to be deemed impossible, if it is the future conduct of a living person.—If the future event on which a contract is contingent is the way in which a person will act at an unspecified time, the event shall be considered to become impossible when such person does anything which renders it impossible that he should so act within any definite time, or otherwise than under further contingencies. Illustration A agrees to pay B a sum of money if B marries C. C marries D. The marriage of B to C must now be considered impossible, although it is possible that D may die and that C may...
Test this main limb within the commercial rights and obligations framework. Operational focus: 34.when event on which contract is contingent to be deemed impossible, if it is the future conduct of.
Contract/deed, authority, chronology, notices, performance and payment records tied to this limb.
Finin2min implementation explanation
Section 34 is a commercial rights and obligations provision dealing with when event on which contract is contingent to be deemed impossible, if it is the future conduct of a living person. Identify the actor, trigger, cumulative or alternative conditions, provisos, exceptions and legal consequence before reaching a conclusion.
Implementation control: Translate the provision into an owner, trigger, approval, evidence, deadline, exception and remedy control, then test connected law and State variation.
Section-level practical application
Transaction test
Apply this provision to the event-date facts and record every satisfied, disputed or inapplicable limb.
Consequence and remedy
Identify how it changes validity, title, authority, liability, payment, rejection, recovery, registration, evidence or relief.
Section 35 - When contracts become void which are contingent on happening of specified event within fixed time. When contracts may be enforced, which are contingent on specified event not happening within fixed time
Local statutory-text source control: Retained official India Code PDF extract. Official India Code source prevails.
Current statutory text
35.When contracts become void which are contingent on happening of specified event within
fixed time.—Contingent contracts to do or not to do anything if a specified uncertain event happens
within a fixed time become void if, at the expiration of the time fixed, such event has not happened, or if,
before the time fixed, such event becomes impossible.
When contracts may be enforced, which are contingent on specified event not happening within
fixed time.—Contingent contracts to do or not to do anything, if a specified uncertain event does not
happen within a fixed time may be enforced by law when the time fixed has expired and such event has
not happened or, before the time fixed has expired, if it becomes certain that such event will not happen.
Illustrations
(a) A promises to pay B a sum of money if a certain ship returns within a year. The contract may be enforced if the ship
returns within the year, and becomes void if the ship is burnt within the year.
(b) A promises to pay B a sum of money if a certain ship does not return within a year. The contract may be enforced if the
ship does not return within the year, or is burnt within the year.
Finin2min clause-by-clause decode
Clause
Statutory requirement
Finin2min meaning
Evidence/control
Main rule
35.When contracts become void which are contingent on happening of specified event within fixed time.—Contingent contracts to do or not to do anything if a specified uncertain event happens within a fixed time become void if, at the expiration of the time fixed, such event has not happened, or if, before the time fixed, such event becomes impossible. When contracts may be enforced, which are contingent on specified event not happening within fixed time.—Contingent contracts to do or not to do anything, if a specified uncertain event does not happen within a fixed time may be enforced by law when the time fixed has expired and...
Test this main limb within the validity and consent framework. Operational focus: 35.when contracts become void which are contingent on happening of specified event within fixed time.—contingent contracts to do.
Contract/deed, authority, chronology, notices, performance and payment records tied to this limb.
(a)
A promises to pay B a sum of money if a certain ship returns within a year. The contract may be enforced if the ship returns within the year, and becomes void if the ship is burnt within the year.
Test this (a) within the validity and consent framework. Operational focus: a promises to pay b a sum of money if a certain ship returns within a year. the.
Contract/deed, authority, chronology, notices, performance and payment records tied to this limb.
(b)
A promises to pay B a sum of money if a certain ship does not return within a year. The contract may be enforced if the ship does not return within the year, or is burnt within the year.
Test this (b) within the validity and consent framework. Operational focus: a promises to pay b a sum of money if a certain ship does not return within a.
Contract/deed, authority, chronology, notices, performance and payment records tied to this limb.
Finin2min implementation explanation
Section 35 is a validity and consent provision dealing with when contracts become void which are contingent on happening of specified event within fixed time. when contracts may be enforced, which are contingent on specified event not happening within fixed time. Identify the actor, trigger, cumulative or alternative conditions, provisos, exceptions and legal consequence before reaching a conclusion.
Implementation control: Preserve negotiations, disclosures and approvals. Test capacity, free consent, lawful object, severability, restitution and ratification as separate questions.
Section-level practical application
Transaction test
Apply this provision to the event-date facts and record every satisfied, disputed or inapplicable limb.
Consequence and remedy
Identify how it changes validity, title, authority, liability, payment, rejection, recovery, registration, evidence or relief.
Section 36 - Agreement contingent on impossible events void
Local statutory-text source control: Retained official India Code PDF extract. Official India Code source prevails.
Current statutory text
36. Agreement contingent on impossible events void.—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.
Illustrations
(a) A agrees to pay B 1,000 rupees if two straight lines should enclose a space. The agreement is void.
(b) A agrees to pay B 1,000 rupees if B will marry A’s daughter C. C was dead at the time of the agreement. The agreement
is void.
CHAPTER IV
OF THE PERFORMANCE OF CONTRACTS
Contracts which must be performed
Finin2min clause-by-clause decode
Clause
Statutory requirement
Finin2min meaning
Evidence/control
Main rule
36. Agreement contingent on impossible events void.—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. Illustrations
Test this main limb within the validity and consent framework. Operational focus: 36. agreement contingent on impossible events void.—contingent agreements to do or not to do anything, if an impossible.
Contract/deed, authority, chronology, notices, performance and payment records tied to this limb.
(a)
A agrees to pay B 1,000 rupees if two straight lines should enclose a space. The agreement is void.
Test this (a) within the validity and consent framework. Operational focus: a agrees to pay b 1,000 rupees if two straight lines should enclose a space. the agreement is.
Contract/deed, authority, chronology, notices, performance and payment records tied to this limb.
(b)
A agrees to pay B 1,000 rupees if B will marry A’s daughter C. C was dead at the time of the agreement. The agreement is void. CHAPTER IV OF THE PERFORMANCE OF CONTRACTS Contracts which must be performed
Test this (b) within the validity and consent framework. Operational focus: a agrees to pay b 1,000 rupees if b will marry a’s daughter c. c was dead at.
Contract/deed, authority, chronology, notices, performance and payment records tied to this limb.
Finin2min implementation explanation
Section 36 is a validity and consent provision dealing with agreement contingent on impossible events void. Identify the actor, trigger, cumulative or alternative conditions, provisos, exceptions and legal consequence before reaching a conclusion.
Implementation control: Preserve negotiations, disclosures and approvals. Test capacity, free consent, lawful object, severability, restitution and ratification as separate questions.
Section-level practical application
Transaction test
Apply this provision to the event-date facts and record every satisfied, disputed or inapplicable limb.
Consequence and remedy
Identify how it changes validity, title, authority, liability, payment, rejection, recovery, registration, evidence or relief.
Practical examples and calculations
Chapter scenario
A live transaction raises issues concerning contingent contracts. Freeze the event date, map each statutory condition, preserve authority and performance evidence, quantify exposure and choose remedy only after limitation and forum review.
Calculation
Method
Evidence
Price / consideration
Reconcile base amount, GST/tax, credits, retention, deductions and payment terms.
Contract, invoice, ledger, tax documents and bank proof.
Loss / compensation
Separate direct loss, consequential loss, avoided cost, mitigation, restitution, interest and stipulated sum.
Loss model, market evidence and mitigation log.
Partner settlement
Reconcile capital, current accounts, loans, drawings, profit share, assets, liabilities and goodwill.
Deed, ledgers, bank records and valuation.
Limitation
Record accrual, breach/refusal, notice, acknowledgment, exclusion and filing date.
Chronology and limitation memorandum.
Practical transaction application
Identify the transaction, relationship, parties and event date.
Map every provision to the contract/deed and actual conduct.
Record conditions satisfied, disputed, waived, excused or prevented.
Reconcile authority, delivery/performance, acceptance, payment and notices.
Quantify exposure and choose cure, termination, recovery, settlement or litigation strategy.
Authority, consent and execution controls
Authority
Correct legal entities and counterparties.
Board, partner, power-of-attorney or delegated authority.
Ordinary-course and implied-authority limits.
Third-party knowledge of restrictions.
Consent
Offer, acceptance and agreed version.
Capacity, free consent and disclosures.
Conditions precedent and approvals.
No unauthorised post-execution alteration.
Execution
Complete schedules and annexures.
Witnessing, attestation and e-sign audit trail.
Counterparts, date and place.
Original and certified-copy custody.
Stamp duty and registration alerts
Stamp duty is State/UT-specific. Classify the true instrument, place of execution or receipt, consideration and property. Registration is a separate enquiry. Insufficient stamping may require impounding; non-registration may affect property and third-party enforceability.
Instrument
Alert
Commercial agreement
Do not default to a generic article if the substance is indemnity, guarantee, security, transfer, lease or another specifically charged instrument.
Partnership deed/reconstitution
Check capital contribution, immovable property, retirement/dissolution and Registrar filing separately.
Sale of movable goods
Coordinate contract, invoice, GST/e-invoice, transport and sectoral records.
Property-related relief
Check compulsory registration, title, court fee and decree-registration effects.
Evidence and document-retention checklist
Core file
Executed agreement and every amendment
Authority and approval trail
Negotiation and version history
Notices and receipt proof
Performance and acceptance evidence
Invoices, ledger and bank proof
Loss and mitigation working
Limitation and forum note
Electronic evidence
Native email/message and metadata.
Version history and e-sign certificate.
System logs and acknowledgements.
Legal hold and defensible export.
Retention
Executed originals and amendments.
Authority and entity records.
Tax, payment and accounting records.
Claims and litigation records through final disposal.
Forms, registers and operational records
Record/form
Control
No universal statutory form
The Act generally works through agreements, notices and evidence rather than prescribed Central forms.
Contract register
Maintain owner, counterparty, value, term, renewal, governing law and dispute route.
Breach/claim file
Preserve notice, causation, loss, mitigation and remedy decision.
Performance, delivery and payment controls
Stage
Control
Proof
Obligation matrix
List each reciprocal obligation, owner, due date, dependency and consequence.
Signed matrix tied to contract sections.
Delivery/performance
Record dispatch, carrier, title/risk point, milestones, inspection and acceptance/rejection.
Delivery documents, certificates and correspondence.
Payment
Reconcile invoice, tax, credit, retention, set-off, due date and bank receipt.
Invoice, e-invoice, ledger and bank proof.
Change/cure
Use authorised variation and cure procedures; avoid informal waiver.
Change order, approval and cure closure.
Breach, loss, mitigation and remedy framework
Identify the exact obligation and legally material breach.
Confirm causation, remoteness, foreseeability and proof of loss.
Record mitigation, avoided cost and substitute performance.
Test damages, price, restitution, lien, stoppage, accounts, dissolution, specific performance, injunction, rescission, rectification, cancellation or declaration.
Check remedy election, double recovery, caps/exclusions and public policy.
Limitation and forum controls
Control
Analysis
Accrual
Classify cause of action and record breach, refusal, knowledge, demand and continuing-obligation dates.
Limitation
Apply the correct article; test acknowledgment, part-payment, exclusion and disability.
Jurisdiction
Check territorial/pecuniary rules, Commercial Courts threshold, exclusive forum and special court.
Interim relief
Assess preservation, injunction, receiver, security and evidence protection.
Appeal/enforcement
Map decree/award challenge, execution, interest and cross-border enforcement.
Arbitration and mediation interface
Validate agreement, signatories, scope, seat, rules and appointment mechanism.
Separate substantive rights from forum selection and identify non-arbitrable issues.
Check interim measures, consolidation, joinder and multi-contract issues.
Preserve limitation during negotiation or mediation.
Record settlement authority, confidentiality, tax, stamp and enforceability.
Company, partnership, GST and tax overlays
Overlay
Questions
Companies Act
Authority, objects, approvals, related-party, loan/guarantee/security and disclosure requirements.
Partnership/LLP
Deed/LLP authority, current constitution and public records.
Withholding, partner remuneration/interest, capital/revenue, bad debt, settlement and transfer consequences.
IBC/FEMA/consumer
Moratorium and avoidance, cross-border payment/governing law, consumer and e-commerce protection.
Binding and foundational judicial principles
Authority
Principle
Verification
Mohori Bibee v. Dharmodas Ghose
Capacity: a minor cannot be made contractually liable through an agreement treated as enforceable against the minor.
Verify official judgment and later treatment.
Bhagwandas Goverdhandas Kedia v. Girdharilal Parshottamdas
Communication rules determine where and when acceptance creates a concluded contract.
Verify official judgment and later treatment.
Central Inland Water Transport Corp. v. Brojo Nath Ganguly
Unconscionable terms and unequal bargaining power may engage public-policy and undue-influence analysis.
Verify official judgment and later treatment.
Satyabrata Ghose v. Mugneeram Bangur & Co.
Section 56 covers practical impossibility and frustration, not merely literal physical impossibility.
Verify official judgment and later treatment.
Fateh Chand v. Balkishan Das
A stipulated sum does not automatically become recoverable; reasonable compensation remains the statutory measure.
Verify official judgment and later treatment.
Kailash Nath Associates v. DDA
Section 74 compensation requires legal injury and cannot operate as an automatic windfall.
Verify official judgment and later treatment.
Central and State/UT variation alerts
Stamp duty, registration, court fee, civil procedure and State amendments must be checked for the instrument and forum.
Use the State/UT variation register in the data folder for the live source checklist.
Chapter-specific decision flowchart
Finin2min Q&A
What decision does ICA-C04 help a business make?
It determines how contingent contracts should be classified, documented, performed and enforced under sections 31-36 of the Indian Contract Act, 1872.
Which provision should be read first in ICA-C04?
Begin with section 31 (“Contingent contract” defined) and then read the connected definitions, exceptions and remedy provisions in sequence.
What is the principal implementation risk in ICA-C04?
Applying a commercial label without proving the statutory conditions for contingent contracts, or acting without authority, notice, performance and payment evidence.
Which execution checks are specific to ICA-C04?
Confirm the correct entities, signatory authority, consent, complete annexures, stamp and registration treatment, digital audit trail and approvals relevant to contingent contracts.
How should evidence be indexed for ICA-C04?
Link every section in the chapter with the contract or deed, authority, chronology, notices, performance, delivery, payment, loss and remedy evidence supporting it.
What calculation should be retained for ICA-C04?
Retain the relevant price, tax, interest, partner-account, loss, mitigation, restitution or relief working with sources and assumptions, not only the final number.
How does limitation affect ICA-C04?
Classify the precise cause of action associated with contingent contracts, record accrual, refusal, notice, acknowledgment and exclusion dates, and apply the correct Limitation Act article.
Can arbitration resolve every dispute arising under ICA-C04?
Arbitration may govern the forum, but it does not validate illegality, remove mandatory rules or make a non-arbitrable subject arbitrable. Check scope, seat and interim relief.
Which tax and entity overlays should be checked for ICA-C04?
Check Companies Act authority and related-party controls, partnership constitution, GST supply and invoice consequences, withholding, accounting and insolvency effects.
What is the final professional sign-off for ICA-C04?
Confirm the current statutory source, section conclusions, State variation, authority, calculation, limitation, remedy, forum and complete evidence trail.
Why is section 36 important to ICA-C04?
Section 36 (Agreement contingent on impossible events void) completes the chapter control and must be tested independently.
