Section 36 of the Indian Contract Act, 1872, deals with agreements contingent upon an impossible event. It states: "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 implies that if an agreement is contingent upon an impossible event, the agreement is void, regardless of whether the parties knew about the impossibility of the event at the time of making the agreement. The section further explains that if the impossibility of the event is known to the parties, the agreement is void ab initio. The Indian courts have interpreted this section to mean that agreements contingent upon impossible events are unenforceable.
Indian Contract Act, 1872
Section 36
Agreement contingent upon an impossible event
⚡ Quick Answer Reference: Section 36 Contract Act
- Provision: Section 36 of Contract Act
- Act: Indian Contract Act, 1872
- Classification: contract
- Jurisdiction: India
- Summary: If an agreement is made contingent upon an impossible event, it is considered void. This means that if something is impossible to happen, any agreement made based on that event is not legally binding. The parties do not need to know about the impossibility at the time of making the agreement for it to be considered void.
What does Section 36 of Contract Act say?
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What does Section 36 of Contract Act mean?
Plain English Explanation
If an agreement is made contingent upon an impossible event, it is considered void. This means that if something is impossible to happen, any agreement made based on that event is not legally binding. The parties do not need to know about the impossibility at the time of making the agreement for it to be considered void.
Practical Interpretation
In real-life situations, this section means that if a contract or agreement is based on an event that cannot happen, it will not be enforceable in court. For example, if two people agree to meet at a specific location if a certain event occurs, but the event is impossible, the agreement is void and cannot be enforced.
Core Legal Purpose
The core purpose of this section is to prevent agreements that are based on impossible events from being legally binding. This ensures that parties do not enter into agreements that are not enforceable and can cause confusion and disputes.
- •The agreement must be contingent upon an impossible event.
- •The impossibility of the event must be the basis of the agreement.
- •The parties do not need to know about the impossibility at the time of making the agreement.
- •The agreement is void regardless of the knowledge of the parties.
Practical Example of Section 36 Contract Act
Rajesh and Priya agree to meet at a specific location if a certain lottery number is drawn. However, the lottery number is impossible to draw. In this case, the agreement between Rajesh and Priya is void because it is based on an impossible event. If Rajesh and Priya try to enforce the agreement in court, it will not be upheld because the event upon which it is based is impossible.
Frequently Asked Questions about Section 36 Contract Act
Q: What is the punishment or consequence under Section 36 of Indian Contract Act, 1872?
This section is a procedural provision and does not prescribe a penal punishment. It simply declares that agreements contingent upon impossible events are void.
Q: Does this section apply to private individuals or public entities?
This section applies to all agreements, regardless of whether they are between private individuals or public entities.
Q: Is an offence under this section bailable or cognizable?
This section is a procedural provision and does not prescribe a penal punishment. Therefore, it is neither bailable nor cognizable.
Common Questions about Section 36 Contract Act
What is Section 36 of Contract Act?
Section 36 of the Indian Contract Act, 1872 (Contract Act) defines and regulates "Agreement contingent upon an impossible event". In plain terms: If an agreement is made contingent upon an impossible event, it is considered void. This means that if something is impossible to happen, any agreement made based on that event is not legally binding. The parties do not need to know about the impossibility at the time of making the agreement for it to be considered void.
What are the elements of Section 36 of Contract Act?
The essential elements of Section 36 of Contract Act are: The agreement must be contingent upon an impossible event.; The impossibility of the event must be the basis of the agreement.; The parties do not need to know about the impossibility at the time of making the agreement..
Landmark Judgments under Section 36 Contract Act
Sections commonly cited alongside Section 36
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