Contingent contracts — MCQs

All questions with answers and explanations

Read the full set here, or use the practice card above to test yourself one question at a time.

1. A contingent contract, as defined under Section 31, depends on:

   • A fixed date of performance
   • An event certain to happen
   • An uncertain event collateral to the contract (correct answer)
   • The consideration paid in advance

   Explanation. Section 31 defines a contingent contract as one to do or not do something if an uncertain event, collateral to the contract, happens or does not happen.

2. Under Section 32, a contract contingent on the happening of an uncertain future event:

   • Can be enforced immediately
   • Can be enforced only after the event happens (correct answer)
   • Is void from the start
   • Can never be enforced

   Explanation. Section 32 states such a contract cannot be enforced until the event actually happens; it becomes void if the event becomes impossible.

3. Under Section 33, a contract contingent on the non-happening of an event can be enforced:

   • As soon as the contract is signed
   • Only once it becomes impossible for the event to happen (correct answer)
   • Only after one year
   • Never

   Explanation. Section 33 permits enforcement only once the happening of the event becomes impossible.

4. Under Section 34, when is a living person's future conduct treated as impossible?

   • When the person turns 60
   • The moment their own act makes it impossible to act that way (correct answer)
   • After 10 years
   • It is never treated as impossible

   Explanation. Section 34 treats such an event as impossible the moment the person does something that rules out acting in that way within a definite time.

5. In Frost v. Knight, Knight promised to marry Miss Frost on his father's death and, while the father was alive, said he would not marry her. The court held that:

   • Knight's marriage to another woman had no legal effect
   • Miss Frost could sue at once, without waiting for the father's death (correct answer)
   • Frost could not sue until the father actually died
   • The promise to marry was void ab initio

   Explanation. Miss Frost was entitled to sue as soon as Knight made clear that he would not perform. She did not have to wait for the father's death. The case applies the rule in Hochster v. De La Tour to a promise whose time of performance was uncertain.

6. A wagering agreement differs from a contingent contract because:

   • It never involves an uncertain event
   • The parties have no interest in the event beyond the bet itself (correct answer)
   • It is always in writing
   • It is enforceable under Section 32

   Explanation. In a wagering agreement, neither party has any genuine interest in the event except winning or losing the stake, unlike a contingent contract such as insurance.

7. Under Section 35, a contract contingent on a specified event happening within a fixed time becomes void if:

   • The event happens before the time expires
   • The event does not happen (or becomes impossible) before the time expires (correct answer)
   • The parties amend the contract
   • The time period is extended

   Explanation. Section 35 provides such a contract becomes void if the event does not happen, or becomes impossible, before the fixed time expires.

8. Under Section 36, an agreement contingent on an impossible event is:

   • Voidable at the option of either party
   • Valid if the parties did not know of the impossibility
   • Void, whether or not the parties knew of the impossibility (correct answer)
   • Enforceable after one year

   Explanation. Section 36 makes such agreements void regardless of whether the parties knew of the impossibility when the agreement was made.