Contingent Contracts MCQ Quiz in বাংলা - Objective Question with Answer for Contingent Contracts - বিনামূল্যে ডাউনলোড করুন [PDF]

The correct answer is Option 3.

Key Points

•  As per section 31 of the Indian Contract Act, 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.
• In life insurance, the contingency revolves around the event of the insured person's death. The insurance company agrees to pay a sum of money (the benefit) to the designated beneficiaries upon the death of the insured. This payment is contingent upon the occurrence of this specific event – the death of the insured individual.
• The contingent nature of the agreement lies in the uncertainty of when the event (death) will occur. Until the death of the insured, the contract remains in force, and the insurance company's obligation to pay the benefit is contingent upon the event of death happening during the policy's active period.

The correct answer is Option 4.

Key Points

• As per section 36 of the Indian Contract Act, 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.
• This principle applies to contingent agreements where the event upon which the agreement depends is impossible at the time the contract is made, regardless of whether the parties are aware of its impossibility. If the event is impossible, the contract becomes void, as it's based on an impossibility from the start.

The Correct answer is

Key Points

• If the contract contemplates the happening of the event within a certain time, and the event does not happen or its happening becomes impossible, the contract becomes void because the agreed condition cannot be fulfilled.
• If the performance is made to depend upon an event which is already impossible and the parties to the contract are unaware of this impossibility, the contract becomes void. This is because the fundamental basis on which the contract was agreed upon cannot be realized.
• The third option, "If the event contemplated does not happen," by itself, doesn't always render the contract void. Many contingent contracts are indeed set up for the eventuality that a particular event may not happen. The outcome (i.e., voiding the contract or not) depends on the specific terms of the contract concerning the non-occurrence of the event.