New Enroll in RBI Grade B New Batch - Starts on May 21

    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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