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      Question

      A agrees to sell his horse to B if it wins the race

      tomorrow. The horse dies during the race. What is the nature of the contract?
      A Executed Contract Correct Answer Incorrect Answer
      B Void ab initio Correct Answer Incorrect Answer
      C Contingent Contract – becomes void Correct Answer Incorrect Answer
      D Wagering Agreement Correct Answer Incorrect Answer

      Solution

      Under Section 32, a contingent contract dependent on an uncertain future event becomes void if the event becomes impossible. Since the horse dies, the event cannot occur.

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